By Shlomo Benartzi
According to a recent survey by the Federal Reserve, 52 percent of adult smartphone owners use mobile banking services. It's easy to understand the appeal of these financial apps, as they give us the ability to get real-time updates on our account balances and spending. Research I conducted with Yaron Levi has shown that such updates can deliver real benefits, helping people cut their spending by 15.7 percent.
However, many financial apps now go far beyond the delivery of information. They also allow us to perform a breathtaking range of actions. We can sell stocks, borrow money from a friend and cash out our 401(k)'s, all without interacting with another person.