Just 25 years ago, the world of technology was a wild frontier. The internet, particularly, was brimming with possibilities.
Investors jumped on the bandwagon, creating what was known as the “dot-com bubble” – an over-inflated technology industry.
This bubble burst, as many eventually do, triggering a significant downturn in global stock markets as high-value shares plummeted. Many investors across the world experienced substantial losses as a result.
Now, we’re living in a digital reality far beyond what most could have imagined in the late 90s and early 2000s. Although the bursting of the dot-com bubble was a challenging lesson for many, technology has continued to evolve over the last 25 years.
In particular, this shift has affected the way we manage our finances, from how we earn and save to how we invest and manage our money.
Continue reading to discover how the rise of technology has altered the UK’s financial landscape, plus, learn what investors should know.
Money management has been made easier (for some) thanks to online banking and investment platforms
Back in 2000, visiting a physical bank branch was the norm. In 2025, however, online banking is the preferred mode for many. Not only can you pay people digitally, but you can manage your accounts, pay bills, and move money around with just a few taps on your smartphone.
This convenience was once a novelty. Now, it’s the expectation.
Similarly, online investing platforms democratised access to financial markets. What was once the exclusive domain of professional brokers is now accessible to anyone with an internet connection.
This has its pros and cons. While it has empowered many to take a more active role in their investment decisions, it’s also important to acknowledge that it can increase your financial risk if you’re working without guidance.
What’s more, certain communities – especially the older generations – may feel alienated by the rise of online financial processes. For instance, Which? reports that since 2015, more than 6,000 bank and building society branches have closed in the UK (that’s 64% of all bank branches that were open at the start of 2015).
“Fintech” has expanded opportunities for many, but also presents new types of risk
In the last decade, consumers have witnessed the explosive growth of “fintech”, or financial technology, which has introduced a host of unique financial products and services to the UK and the world at large.
- Neo-banks: Organisations such as Revolut, Monzo, and Starling Bank have taken the act of managing your money completely online by offering intuitive apps. Features include spending breakdowns, budgeting tools, instant notifications, and more, all without a brick-and-mortar bank branch. These can be great tools, but if something goes wrong, there is typically less consumer protection available than if you bank with a traditional institution.
- Peer-to-peer (P2P) lending: Platforms such as Zopa and RateSetter emerged as a way for individuals to lend and borrow money directly from each other, often bypassing traditional banks and potentially offering improved rates. However, these can be riskier than other forms of lending and investing.
- Robo-advisers: Services such as Nutmeg and Wealthify use algorithms to manage investment portfolios based on an individual’s risk tolerance and financial goals. These are often presented as an alternative to traditional financial services, but they can’t offer truly tailored solutions.
While these innovations may have helped create more personalised and efficient ways to manage your money, it is worth noting that they carry risks and your wealth may not be fully protected if something goes wrong.
Cryptocurrencies and the blockchain have changed the way we think about value and transactions
Perhaps one of the most talked-about technological shifts is the emergence of cryptocurrencies such as Bitcoin, and the underlying blockchain technology that powers them.
The blockchain is a technology that allows for secure, transparent, and decentralised record-keeping. Think of it as a digital ledger, shared across many computers. This can make it difficult to change or hack. It’s used to track transactions, manage assets, and power cryptocurrencies.
Once a mystery to most, now the blockchain is understood and used by millions across the world.
Although an exciting new form of digital currency, crypto is a high-risk investment due to its inherent price volatility and should be approached with significant caution.
If you want to invest in fintech, it’s important to tread carefully
You might be excited about the rise of fintech, not just as a consumer, but as an investor.
While there are certainly exciting opportunities to consider, the events of the early 2000s are an important reminder that investing too heavily in unproven technologies is risky without consulting experienced professionals who can help you mitigate risk.
While today’s technological landscape has certainly matured, the underlying principle remains: Understand what you’re investing in and where the risks lie.
To do this, you can:
- Educate yourself about new technology
- Exercise serious caution when exploring broadly unregulated areas like cryptocurrency
- Diversify your portfolio, as this remains a cornerstone of sound financial planning
- Seek professional advice before making any decisions.
The technological advancements of the last two decades have undeniably put more power into your hands when it comes to managing your finances. While this is positive news, make sure you understand how to use these tools responsibly and continue learning how to make informed decisions for your money.
Get in touch
As technology continues to evolve, staying educated and exercising caution where necessary will be key to navigating your financial journey successfully.
For guidance on how to make your money work for you in this ever-evolving world, we’re here to help.
Email us at [email protected], or call 01273 076 587 to find out more.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Cryptoassets are not regulated financial products so please be aware that trading them carries a considerable amount of risk for your capital. Cryptocurrencies are also not covered by existing consumer protection laws and are not suitable for the majority of investors.
