How is the Future of Money Expected to Be?
It is hard to imagine life sans money. Currency evolved a long time back, and a majority of people must have forgotten how it emerged. Well, that may not be an important subject to think about. Considering the present scenario, it is crucial to think about how you are going to use your money and what other forms of it will likely be introduced soon.
Before the evolution of money, we were reliant on a barter system, and then new forms of money came along like digital currency. Now the pandemic is all set to revolutionise the way we all have been dealing with the money. The current scenario has led to predictions of money.
Society will go cashless.
After the outbreak of the pandemic, many countries have encouraged digital payments. The fear of being a victim to the virus, even those people have begun to shift digital platforms that were not comfortable to transfer money online.
Various payment apps like Google Pay are out there people are using to make payments. The contactless transaction is building a cashless society. Some people are still using cash, but a majority of them are from rural areas that have no access to banking facility.
A rise in the number of people using payment apps has increased the burden on mobile payment companies to provide additional security and privacy to data and personal information of users. As a large number of people are familiar with such apps, it seems that soon the whole society will adopt contactless transaction.
Although governments are running campaigns to encourage people to use digital payment apps and for this, vendors are offering discounts to people, it is also predicted that the society is not going to be cashless very soon.
Innovative financial products will come in the market.
It is prognosticated that payday loans will soon disappear into thin air. People are already aware of their dangers, and they will be outcompeted by innovative financial products. Loan lenders are more flexible and innovative than banking systems.
They are competing against them in identifying the needs of borrowers and giving them a helping hand. Lenders are expected to make their financial products better so people can get them at far better interest rates.
Robert will look over the application.
You must have heard about robotic surgeries. Likewise, robots are expected to assist the lending industry in assessing applications. AI-driven robots can help lenders arrive at a decision quickly. It is always a burden on lenders to make the right decision, so the borrower does not fall into debt. Assessing the affordability can be a bit hard, especially if borrowers are taking on a large amount of money, for instance, 3000 loan with bad credit.
Robotic technology can assess the present and futuristic affordability of the borrower in case financial condition changes down the road. AI technology can also warn lenders against loans that could have trouble with repayments so they can immediately work on the repayment plan.
Money management approach will no longer be generic.
Since the pandemic has taught a great lesson to people, it is expected that money management behaviour will be purpose-driven. Now people will not just focus on setting aside money, but they will set a goal to make sure that they do not end up with financial parboil.
People will switch to budgeting apps to save, invest and spend money, so they are on top of their expenses. The aspect of money management will broaden now onwards. People will handle both investment and saving simultaneously.
Well, these are predictions. It is expected that the future of money will be like this, but it doesn’t need to be like it. If you look back, you will find that there have been a lot of evolutions so far. It means it will not stop evolving, but it is yet to see what changes will exactly be introduced.