Trends That Will Change The Personal Finance Industry In 2022
The personal finance industry is a particularly fluid one. That is because it thrives off of technology. Those who intend to keep better track of their finances are often the first to demand superior products and tools.
Let’s talk about three trends that are likely to shake up the personal finance industry next year. Some of them already exist, but expect them to come on even stronger as we venture into 2022.
Automated Processes Will Make More of an Impact
In a sense, automation has made the modern world possible. Since the Industrial Revolution, business entities have continued to try and automate as many processes as possible because of the time and money-saving that can result.
These days, many financial entities, such as banks and credit unions, are devoting their resources to coming up with automated tools that anyone can use to uplevel their finances. Something like this debt consolidation calculator is a perfect example.
Money lending will be one area where you will see this sort of thing more in 2022. You will be able to approach a bank or credit union through their smartphone app instead of setting up an in-person appointment. You will also be able to find out whether you qualify for a loan based on a simple, digital form you fill out.
This means you won’t need to drive to the brick-and-mortar location of the entity from which you’re trying to borrow money. Meanwhile, a bank employee will not have to take time out of their schedule to meet with you. It’s just one example of automation that should reduce operational costs on both your end and theirs.
Digital Spending Should Increase
If you look at how our world has changed since the turn of the last century, one thing that probably stands out is how many more online transactions occur today. There are very few individuals remaining who are unwilling to buy products online and have them shipped to their homes rather than going to physical stores to shop.
While it seems unlikely that in-person shopping will ever be completely eradicated, what’s undeniable is that more individuals are using digital wallets to make online purchases now than ever before. Fewer people are leaving their homes to buy things, and they’re using cash more infrequently when they do.
In 2022, this trend should only continue. It could be the first year that digital payments completely overtake cash ones. Society is rapidly becoming more digitally oriented, and this is also changing how most people do their banking.
You Should See More Contactless Purchasing
A third change in your personal finances you will probably see in 2022 is that you might decide to try contactless paying for the first time. Many individuals have tried it already. If they’re a member of the younger generations, they’re more likely to embrace this technology and even take it for granted.
It’s true that Covid-19 impacted consumer behavior. Even were it not for the coronavirus, though, many people were already starting to embrace contactless payments as an option. Contactless payment systems allow you to hold a credit card over a scanner to pay for a purchase instead of inserting or swiping it. You can also do so with a key fob or your smartphone.
This system uses RFID technology, and its simplicity makes it increasingly attractive. Consider how much easier it is to wave your iPhone over a payment station at the grocery store instead of fumbling with cash.
Will You Embrace These Changes in the World of Personal Finance?
You are under no obligation to follow any of these trends, but they’re already impacting society. You may decide to try out some of the new technology we mentioned this coming year because of how much time and energy it can potentially save you.
