Transaction Trends We Can Expect in 2019
Like many industries, in 2018 the world of finance experienced a lot of disruption. New technologies such as P2P payment services, mobile wallets, and blockchain technology are all rapidly changing the ways we think about money. With this breakneck innovation, it’s clear that transactions will soon look radically different than they did ten years ago. Pay attention to some of our major predictions for 2019 to stay ahead of the curve and better serve the customers of the future.
Alternative Financing Services
For small businesses, getting loans has historically been quite difficult. For that reason, there’s big demand for alternative financing options. Services such as Square Capital, Fundbox, and OnDeck all make it easy to finance a business without the hassle of dealing with a bank. Having greater access to capital through these methods will greatly help startups and small businesses in 2019.
Growth of Voice Commerce
Siri, Alexa, and Cortana are just a few of the virtual personalities we’ve been introduced to over the past few years to facilitate our voice transactions. The prevalence of these digital liaisons will only increase throughout 2019. With 500 million customers currently using Siri globally, voice shopping is currently on trajectory to to be valued at $40 billion in the U.S. and $5 billion in the UK by 2022.
Implementation of Consumer Payment Behaviour by Banks
The rise of digital transactions has led to an explosion in data regarding consumer payment behavior. In 2019 banks will continue to use this data to improve their user interfaces and customer service to create experiences that are quick, simple, and enjoyable for their customers. In doing so, banking will become a much more streamlined experience.
Increase in Machine Learning and AI
While artificial intelligence and machine learning used to only be a science fiction dream, these technologies are rapidly becoming a reality. Robotic process automation (RPA), refers to programs that automate repetitive human processing, such as data entry. Since implementing these machines offers a 40% to 100% ROI in three to eight months, it’s clear that more finance companies will be adopting this technology soon to increase their efficiency in data entry.
Open Banking and Integration With Third Party Applications
Open banking refers to forcing banks to disclose their data through APIs in a manner that is both secure and standardised. Doing allows third parties, or the banks themselves, to use the data to create products. These products allow consumers to compare banks, in order to find one that best suits their financial needs. In doing so, newer banks will be able to compete more easily with older, more established institutions. Due to the fact that this practice encourages lower costs, better technology, and stronger customer service, it’s likely that open banking will become a more widespread practice in 2019.
More Instant, Mobile Payments
Over a billion dollars per day were transferred via mobile devices in 2017. That year, 2.4 billion people globally had smartphones, however, by 2021 it’s expected that there will be over 3.8 billion smartphone users worldwide. With this projected increase, it’s easy to see how mobile payments will soon dominate a portion of transactions. Mobile wallets such as Apple Pay and Samsung Pay are becoming more popular, and APIs are providing countless new payment options to consumers.
With all these trends in mind, from voice commerce, to instant payments, to artificial intelligence, it’s easy to see that the future of finance will be much more efficient, easy, and enjoyable. Be sure to stay up with these trends in 2019 to ensure that your business is among the disruptors, rather than the disrupted.