Projections show that the global digital transformation market is expected to reach a value of $1.01 trillion by 2025.
Digital transformation is having a huge effect on many industries, including the financial sector. Upcoming financial trends are quite different from the ones we’ve seen in the past, and it’s important to understand what they mean for individuals and businesses.
For a rundown of some of the latest financial trends, keep reading.
Digital money is one of the most talked-about trends in finance, and in many countries, money has already widely gone digital. Apps like Apple Pay and Google Pay allow people to pay for goods in shops simply by tapping their smartphone against a card reader. Mastercard has even developed a “smile to pay” system where shoppers can make purchases by smiling at a camera.
Any money that exists electronically is considered ‘digital money’, and with this, the use of physical cash has dropped significantly. Adding to this are cryptocurrencies which have exploded in popularity over the last 13 years.
A cashless society is a financial trend that’s becoming more and more likely with the increased use of digital money. Many people never use cash in their day-to-day lives and are in support of society going cashless.
It might sound a bit unrealistic, but hundreds of currencies have disappeared in recent decades. The European Central Bank is even already looking into the potential of implementing a “digital Euro”.
Some people are strongly opposed to this, however. There are concerns about what it could mean in terms of personal data and how it connects to our money. It could also present some data security and fraud risks.
Viewpoints on this are constantly changing. Take a look at this news site for the latest information regarding financial industry trends.
Smartphones have made financial management much easier, offering a range of apps for personal and business use. Digital wallets like those mentioned above, allow people to pay for goods or services via contactless payments with their phones. You can also use these to transfer money to someone else.
This has also given rise to mobile banks, which don’t have high street branches, and users can operate everything through the app on their phones.
You can also find apps that monitor things like the stock market so you can keep up to date wherever you are.
Personalized Financial Services
The use of digital money generates a lot of data about people’s spending. Banks can leverage this data to offer customers services that are more suited to them.
This way banks can help people with money management and other tasks.
Focus on Financial Trends
With digitalization, many financial trends are quickly growing. They offer several advantages for people, helping with money management, spending, investing, and more. Staying up to date with the latest financial trends will help you get the most out of them.
For more financial tips, check out some of our other blog posts.