Money trends and tech that will help shape your year
Change is coming fast in the world of money, and consumers need to stay on top of it to ensure they get the best deals and avoid rip-offs.
Saver HQ
Don't miss out on the headlines from Saver HQ. Followed categories will be added to My News.
Blink and you might miss money’s rapid-fire technology revolution.
In just two decades we’ve gone from passbooks to phones, can now swipe a smart watch to pay for stuff, and never need to step inside a bank branch.
And in 2020 technology will continue changing how we manage money, so let’s dust off the crystal ball and examine consumer finance trends to shape your year.
NEOBANKS POWER UP
Australia now has five fully-fledged digital banks, also called neobanks: Volt, Xinja, 86400, Judo and Up.
Without expensive branch networks, these online-only banks will step up their fight against the big four, and Volt CEO Steve Weston said by the end of 2020 they would no longer be seen as niche.
“The neobank sector will move beyond licensing and launch an increasing number of products while rapidly acquiring customers,” he said.
ITCHING TO SWITCH
Being with one bank was once a good way to get loyalty discounts, but not anymore.
Consumers now fare better by switching banks and products, and Mr Weston said Millennials in particular were “increasingly promiscuous with their banking”.
Research had found around three quarters of Millennials (aged 25-39) used more than one financial institution, he said.
Jason Robinson and Casey Hogan are regular early adopters of technology and love the idea of digital banking competition.
“We’re also very attracted to the better interest rates, and don’t feel any loyalty whatsoever to traditional banks who seem intent on cross-selling us a whole bunch of products that won’t help to improve our financial wellbeing,” Mr Robinson said.
DISAPPEARING CASH
Notes and coins are exiting stage left as digital payments and wearables expand.
Zenith Payments general manager of prepaid Michelle Rowcliff said Australia was predicted to become a cashless society in three years, second only to Sweden.
“It is easy for the next generation to tap, tap and tap without paying much attention to how much they are spending,” she said.
“It’s now more important than ever to instil good saving habits and money management skills with the physical experience of exchanging cash firmly on the way out.”
People’s Choice Credit Union spokesman Stuart Symons said the cashless trend had caused ATM numbers to drop by 2255 to 11,560 in just two years.
“We don’t expect this trend to change, so it may be that the best advice for modern times is to make sure you know your alternatives so you have a small bit of cash on you at all times.”
SOPHISTICATED SCAMMERS
Mr Symons said scams were only going to sound better and multiply as fraudsters became more integrated with our phones, computers and other technology.
“If you hand over passwords and other identifiers there may be little that your financial institution can do to protect you and your funds,” he said.
“Everyone has to be on their guard and improve their understanding of digital protection.”
Originally published as Money trends and tech that will help shape your year