In 1998, Elon Musk founded PayPal, a web service that would be the beginning to extending personal banking beyond brick and mortar banks. The online world of finance was enhanced through technology, allowing money transfers to occur without stepping foot inside a bank. Today, technology is still enhancing the way people do their banking. Where is personal finance headed in the future?
Today, anyone with a PayPal account can send money to others, pay or request invoices, and even set up a merchant account for businesses. When you’re online shopping, you have the option to pay with the click of a button through your PayPal account. Other apps such as Google Wallet, Apple Pay, Venmo and more, allow you to control digital payments with ease through your smart phone.
Smart phones, smart watches, and online banking are evolving the world of finance at a fast pace. Although nothing is certain, can we predict where the future of financing resides?
Square is an app that’s already changed the world of small business. Paying with cash is no longer necessary with debit cards, credit cards and now, chipped cards. Square allows customers to pay without cash if the business doesn’t have a card reading register. Square makes payments possible in a world without cash.
It’s a fact that apps make our lives easier. There’s no question that as time passes, apps will not only continue to ease one’s personal financing, but enhance with even more options in the future.
More Educational Financing
Control and transparency are the two things people want most when it comes to how they handle their finances. Understanding finances and investments is key to financial success. Educational programs for financing could become more popular. People want to know their options, and how to make the best decisions for themselves. This educational process will create loyalty between a bank and its customers.
Programs are popping up not only for the public, but for college students as well. Personal finance courses are becoming more necessary in today’s society.
Have you ever noticed that when you search for a product, later that day Facebook shows you an ad for that same thing? That’s because when you shop online, third parties follow your every move. Welcome to the world of big data. Big data analyzes consumers and attempts to provide the best experience possible. Much like big data and online shopping, it’s likely that the consumer experience in terms of personal finance will grow in priority for bankers. Conventional data will become actionable data to ensure the satisfaction of consumers with their personal banking experience.
Finance has evolved throughout history from the time coins were first used, all the way to plastic cards with chips being a prioritized way of making purchases. Although no one can accurately say what finance will look like in decades, or even centuries to come, it’s highly likely that these predicted trends will become more prominent in the next few years.