Industry experts like Dan Schatt and others have some bold predictions for the future of banking. From the evolution of the banking app and the death of cash to a push for universal basic income, here’s what they think is coming.
The Evolution of Banking Apps
The banking app is evolving. It will become more like a personal financial assistant (PFA) and less like a traditional bank account. You’ll be able to see all of your accounts in one place, including your credit cards, checking accounts, savings account, and investments. You’ll also be able to get real-time updates about your spending behavior and see your net worth. You’ll also be able to connect it to third-party apps, so you can round up every purchase on a credit card and invest the spare change in a Robo-advisor account or have money deducted from an investment account and given directly to charities you support.
The Death of Cash
Cash is becoming obsolete. Visa and Mastercard already process more digital transactions than cash transactions. So in a few years, we’ll likely see a world where cash is used only for very small transactions or for payments that can’t be processed through a card. This will be good for the environment and security, as there will be less cash to protect and fewer ways for criminals to counterfeit it.
The Push for Universal Basic Income
There’s a growing push in many parts of the world for some universal basic income (UBI). However, in a few years, we might see this manifest as an entitlement from some form of government or as a benefit from employers instead.
If you’re wondering what UBI is, it’s a set payment to all citizens of a country or other geographic area, regardless of income. Many people believe that UBI should replace all other forms of welfare and social security, while others think it should exist alongside those other programs.
More Options for P2P Payments
Peer-to-peer (P2P) payments are becoming more common when you send money to another person or organization. This is partly because the younger generation prefers doing everything on their mobile device, including banking and making payments. There are already dozens of services for P2P payments available today, so in a few years, they may become more mainstream.
Chatbots are becoming more intelligent, and they’re being used in a growing number of industries. For example, some bots help you talk to airlines or hotel chains about your travel plans or that let you order flowers from a local florist. In a few years, we’ll likely see chatbots used by banks to help customers with their finances. For example, you might be able to ask a chatbot about your account balance, recent transactions, or upcoming bills.
The Rise of Cryptocurrencies
Cryptocurrencies are becoming more popular every day. They may completely replace traditional currencies in countries like Venezuela and Zimbabwe in a few years, where people have lost faith in their government-backed money. However, they’re unlikely to gain widespread acceptance as a payment method because the price is so volatile that it’s difficult for businesses to set prices or even incorporate them into cash flow projections.