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The Biggest Trends in Money We Have Seen This Year
Man has been able to consider money as what makes the world go round. Therefore, there have been so many trends that have been implemented in the use of money and its convenience use.
The thing about these trends we have witnessed so far is that, you cannot afford to miss out on them because it definitely will affect you a lot in many aspects of your life. So, I can see you are desperate to hear the trends so you can act towards them.
Obviously, not because you care so much about trends, but because you care about your life more than anything, yes, you need to know. I will not deprive you the privilege to know these trends; in fact, I will help you in breaking them to small pieces so you can get it perfectly. Let us see it together.
It is no more news now that currently more users are being accumulated by PayPal and other means of digital money, investment funds and saving sum of money such as Payoneer. An estimate on 3 billion plus users was reported for PayPal in 2020, therefore, it is now trending that, majority of the people do cashless transaction this year.
It is clear that cashless policy has been in existence quite a while but its acceptance as means of transaction or transferring sum of money has not been widely accepted for a very long term until this year. The major obstacle in the previous years were low level of education of some businessmen but it seems most of them have now open their hands wide to its acceptance this year.
Truly, it has been forecasted that countries like US, Canada, UK will be cashless this year but it has never been confirmed until recently when we have seen it. It is proven now that, PayPal has more than the customers of many national banks in advanced countries. So, digital money is overtaking physical money.
Increased Artificial Intelligence Security
The rate of hacking and financial fraud that have been witnessed by many financial institutions and customers is alarming some years back. The new trending measure in regards to protection against financial fraud is the use of artificial intelligence as part of security.
This is why many financial institutions would ask you some deep personal question in which it is difficult for third party to know as part of your security. Both physical bank (big banks and small banks) and online-only banks request for such information, for example, Venmo asks for last 4 digits of your friends when you are about to send them money.
Overtaking of Credit Card
Almost all households have credit cards in advanced countries. Some households that do not even operate bank account use the credit card instead. The use of credit for investment funds and other purpose is becoming more evident this year as more credit cards were issued to new customers around the globe.
The increase in the number of credit card issued in US this year was reported risen from the normal 2.5% to 3.5% increase and on a long term, more increase is expected. Currently, more than 400 million US citizens use credit card.
In Nigeria, the percentage of credit card users is reported to be more than 5% of the population. Therefore, it is now being widely accepted as a normal means of transaction around the world, even more preferable to operating bank account in some households.
Use of Prepaid Card
It is now becoming the new trend among many household, usually as a means of restriction or a way of showing commitment to use prepaid card. This type of card is used as a means of restriction mostly for children whereby some locations or categories are locked off from its usage.
However, the adult can use the prepaid card as a way showing commitment and loyalty to a particular outlet or store. Therefore, it is considered as good news for loyalty and commitment while it may be seen as bad news for privacy for the children (who are restricted by it). The use of prepaid card is one of the biggest trends this year. In fact, it is becoming a better way to use mutual funds.
High-Interest on Savings Account
Savings account just got interesting with the new development in some online-only banking services. There has been so much clamouring for engaging in savings, but what makes it more worthy is that you begin to earn high interest on your savings now. This makes more sense to people who have been paying high interest on loan money to their banks for a very long term. Now, it is time to turn the table.
In fact, you do not need to do the stress of queuing in banks before you deposit, you can do it with some few touch on your mobile cell phones. You can easily check some online banks that offer lucrative interest on your savings and start earning while still saving your cash or reserved sum of money. A good example of this online bank is Ally and Wealthfront. You can check more of them out.
Banking Services at Your Door
The advent of point of sales (POS) at every joint makes money dealings easier than ever before. Almost everyone offer banking services now, in fact, supermarkets, airlines and neighbours could help you in withdrawing cash, depositing, transfer and exchange as much as you want with little charges. The new trend saves you time and stress of running here and there to banks for simple things while incurring other expenses on transportation.
Phones Becoming Wallets
There was a time that you see many adults and middle age wearing wristwatches just to be conscious of the time. You too, check your surroundings now, how many people can you see wearing wristwatches now? Very few right? Even the few that wears it are majorly using it as an article of ostentation, because, they wear quality ones.
If you understand that phones have been used to replace it, then you should understand that many people now keep their money in their phone. Rather than move with cash and be susceptible to robbery, they prefer to carry digital cash instead which resides in their mobile cell phones.
That is why you see many people going out without bothering about taking their wallet because it has become obsolete. However, phone carries the digital cash and whenever they desire to purchase anything, they only say, "I do not have cash, I will do transfer to you" and that is it.
Death of Deposit Slip and Cheque
The use of deposit slip when you reach physical banks has been gotten rid off in many banks now. Investors with so much investment funds struggle to write the deposit slip in banks, especially, the semi-literate among them. People now use USSD code to deposit, the bank is now going paperless. It means, you do not need to bother about pen or how to write the sum in words when you are going to deposit.
In the same way, hardly will you see anyone issuing cheque to third party. However, there are bigger cheques still being used as a prize in a competition or as a consolation prize. Both deposit slips and cheques have been murdered this year and new methods are being used to do the same thing. It makes life easier and brings about development.
The good news for the hasty people this year is that, most stores in advanced countries are now using contactless payment. As far back as 2017, McDonald has been trying the use of contactless payment around the world, it has however gotten better this year and is being adopted by many other stores.
Hurray! All you need to do now is just drive in and grab whatever you want and drive off. However, the store is guaranteed payment via the wireless technology connected to windscreen which is linked to your bank account and you are therefore automatically charged as soon as you grab your goods. This is one of the biggest trends we have seen this year in money and transaction.
Review in Bank Charges
Lastly, there have been widespread review in charges from bank and mostly, it has been done in favour of the customers. However, there are some that is at the advantage of the bank such as fixed charges on transfer and undoubtedly interest charges on loan money.
Majorly, the splash in the charges on use of ATM machines of another bank after the third usage makes it more convenient for the users. There are other reviews that promote the easier dealing with money with financial institution during this year, thereby, making banking more fun and easier for customers.
In conclusion, there are different trends going on about money in this year. There are more being anticipated. The major backstab that was seen as delaying some of these trends as anticipated is the effect of the COVID-19 pandemic that has crushed the economy and other sectors around the world.
Yet, some of the trends so far are highlighted above and you can explore more later over here as we bring you more on the trends in money you have never seen.