6 Important Trends in Finances You Need to Keep an Eye On

With the digitalization taking over almost every aspect of our lives, it is becoming more and more important to stay up to date with the newest trends. The financial industry is not exception and we can expect a lot of upcoming transformations in this area, which could possibly change the world as we know it. If you want to find out more and stay up to date on the topic, this article provides some insights on the most valuable trends that are currently taking over the financial market.

  1. Mobile Payments

Paying for stuff from your smartphone is one of the new trends that have reshaped the ways we do our shopping, since the era of using cash is slowly coming to an end. It is important to get familiar with mobile payments, as it’s becoming very common for merchants to accept them. For example, one kind of digital payment that has been becoming more popular recently is the contactless payment method, which allows the customer to pay for the purchases by simply holding a debit or a credit card near a terminal. With the great benefit of saving so much time it is certain that digital payments will soon be used by everybody.

  • Cryptocurrencies

Even though a lot of people deem cryptocurrencies as unstable because of their ever fluctuating prices on the market, it is still expected that this trend will keep gaining more and more popularity in the near future as it was developed mainly to improve digital transactions. Due to the nearly constant growth of some cryptocurrencies such as Bitcoin, the attention towards digital currencies is increasing rapidly and the market has been attracting a raising number of new investors. Hopefully, with the new popularity, the security of the cryptocurrencies will be improved and therefore investing in them would not be such a risky endeavour.

  • Artificial Intelligence

Artificial Intelligence or also widely known as simply AI is another term that has taken over the world in the recent years. The trend started gaining momentum several years ago, and since then we can see the impact of it in our everyday life. Be it automated email response prompter or a virtual assistant, it is a fact that Artificial Intelligence is designed to make human’s life easier. What’s more, the various capabilities of AI have made it very popular among investors and it is expected that the hype around this branch of computer science will only get stronger in the years to come.

  • Security

With the development of so many digital technologies and the increasing demand of more mobile services, the aspect of cyber security is becoming more important than ever. Since even one data breach can cost a company devastating financial losses or a ruined media image, it is definitely worth it for financial organizations to invest some serious means in defence against cyber attacks. What’s more, financial information has proven to be one of the most valuable assets today. Therefore, it is safe to say that alongside the new technological challenges that we are facing nowadays, considerations about security are gaining the attention they need.

  • Personalized Services

Many companies are now offering much better services for their individual customers, tailored to their specific needs. With the help of AI and similar technologies, it’s easier than ever to develop products that match the expectations of each individual user as closely as possible. This is very true on some specific markets like the lending one – you can find great deals on loans that work very well for your specific situation, and are designed for people like you exactly.

  • Constant Connectivity

We are now constantly connected to our finances, and this is only going to keep getting better. The average person now has immediate access to their bank accounts and other payment instruments, and there are many indications that financial institutions want to expand this idea even further. It will likely take a while before this has widespread adoption, but it’s important to realize that it’s already happening, and that it’s a trend that’s here to stay. So pay attention to what’s going on, and ensure that you’re using technology to its full potential when it comes to keeping your accounts in check.

You don’t have to directly involve yourself with these trends, but it’s important to pay attention to them in any case. They are going to define a large part of the way finances work in the future, and this will have an impact on pretty much every person on the market.

Is Cash Going Away in the Next 10 Years?

There’s been a lot of talk about the “cashless future” for several years now, and while many kept predicting that this was right on the horizon, it’s not yet manifested itself as a proper trend around us. That certainly doesn’t mean it won’t happen though – in fact, it’s only a matter of time at this point. It’s important to pay attention to the way things are moving in society with regards to adoption of cashless payment systems, because this will have an impact on both consumers as well as businesses.

Recent Trends

There have been various trends on the financial market that have been good indicators that we’re moving in the direction of cashless transactions. Electronic payment processors are all around us now, and they’re a very popular tool for many people. And that’s just the tip of the iceberg. Many companies are now experimenting with integrating alternatives to cash in their workflow, as well as working directly with digital systems without having to go through any cash reserves. The problem is that most people still don’t know what they’re doing in this regard, as the market is still not very developed.

The Rise of Cryptocurrencies

It’s hard to talk about cashless systems without mentioning cryptocurrencies. They have been an important trend for quite some time now, and it looks like they’re going to keep having a strong impact on society in the future too. Many people have started to adopt cryptocurrencies in their daily lives, and this is far from limited to tech geeks and others interested in the purely technological aspect of the system. It’s becoming more and more open to the average layperson, and while that’s generally a good thing, it also comes with a few strings attached. Most notably, not everyone has the kind of expertise that they need to navigate the deeper levels of this field comfortably.

Digital Cash Experiments

Some countries have already started to experiment with digital cash in their societies, but this is just on a low experimental level for now, and not any major trend by any means. Still, it’s interesting to see this progress and observe the reactions people have to this system, because it’s revealed some surprising insights about the way society as a whole works. Turns out that cash is not as integral to the lives of most people as we originally thought, and can actually be dealt away with relatively easily if the problem is approached the right way.

The Importance of Cash in Some Sectors

Cash remains a staple of our modern society, and an important tool in some specific parts of it as well. The lending industry is perhaps the best example – it would be turned upside down overnight if cash transactions were completely removed. That’s probably why we’re still seeing some resistance to the trend from that area. Taking out a loan can benefit the average person significantly at the right time in their lives, and it’s important that we don’t remove this possibility for those who need it. At the same time, cashless loans with no credit check can also have their advantages that are not to be underestimated.

A Controversial Topic

Some people are against the idea of cashless transactions for various reasons, and this remains a controversial topic in some parts of society. There is still strong resistance to this movement and it will likely take a while for widespread adoption to set in. And it’s important for people to join these discussions as much as they can, and engage those who have something to say about the situation. Because that’s the only way we’re going to figure out what we want as a society.

Security and Privacy Concerns

The reason most people are against the idea of going completely cashless is because the idea seems to have some frightening implications on things like security and privacy. There are various questions lingering in the air that nobody has managed to answer properly yet. For example, how do we deal with fraud when it could result in erasing a person’s entire life savings in a few clicks? What do we do about governments tracking the spending habits of their citizens and using the information for nefarious purposes? There are many “what ifs” up there right now, and nobody seems to have a good answer for most of them.

But in the end, it’s not the kind of problem that will be resolved quickly. This is a major shift in society, and it’s important for people to be on board with the changes that are coming up, and discuss their perception of the situation as much as possible. Because we still have the option of raising our voices – but it won’t be there forever.