2020 was a tough financial year for many people. At the height of the pandemic, nearly 90% of Americans reported that COVID-19 was adding stress to their personal finances, according to a survey by the National Endowment for Financial Education. With this increase in financial stress, and due to quarantine and social distancing measures, more people started turning to the Internet to find ways to make, save, and manage money.

Like most things, having easy access to financial information online comes with its pros and cons. Financial technology, or “fintech,” can make our lives easier or more complicated depending on how we use it.

To help you navigate fintech wisely, here are some benefits and potential pitfalls to be aware of in our increasingly high-tech financial world.

First, the advantages:

Financial Literacy: Want to understand the difference between a fixed-rate and adjustable-rate mortgage? Need a calculator to figure out your debt payments? Looking for savings accounts with the best rates? A quick online search can give you the answers from trustworthy, accredited sources.

Stress-Free Saving: Studies show people avoid checking their bank accounts when they’re anxious about finances and are more likely to check when they feel things are going well. Technology can help by automating good habits, like transferring part of your paycheck to a savings account. Having some savings can cushion the blow of unexpected expenses.

Financial Flexibility: You don’t always have time to go to the bank or cash a check. Mobile and online banking let you access your accounts anytime and anywhere, with secure encryption and easy transfers. Over the past year, at-home banking has helped families and businesses manage their finances remotely.

Now, for the disadvantages:

“Invisible” Spending: Online shopping surged in 2020 as more people turned to e-commerce. However, digital spending can lead to higher bills because website designs and algorithms make it easy to buy things and hard to keep track of your total spending.

Myths and Misinformation: Anyone can claim to be a financial expert on social media or a personal website, whether they have the credentials or not. This means you can come across a lot of dangerous advice online, some of it intentionally misleading. If a money-making tip or loophole sounds too good to be true, it probably is.

At Axiom Bank, we are dedicated to using the right mix of fintech to help customers manage their money effectively. We offer a variety of solutions – such as Online and Mobile Banking, remote Bill Pay, photo check deposit, and more – making it easy to handle your accounts no matter where life takes you.

Axiom Bank, N.A., a nationally chartered community bank based in Central Florida, offers retail banking services, including checking, savings, money market, and CD accounts. We also provide commercial banking, treasury management services, and commercial loans for real estate and business purposes.