4 Banking Trends: The Future of Managing Your Personal Finances

Banking trends are sometimes hard to keep up with as things seem to change so rapidly in this 24/7 world of technology that we live in today. So what are the items we need to be looking out for that are on trend in the industry? Here we have 4 items we feel you need to be aware of that might be driving change.

Voice Commerce

This is probably one of the coolest new trends as we are seeing more and more of voice automation in a lot of the things we use within technology. Think on how we are asking Siri (Apple) or Alexa (Amazon) about the weather or the news. Even the newer cars are accepting voice commands through the radio. So how does this entire all tie into banking? Well, if you have ever ordered from Amazon something that is a regular item sent to you, you can tell Alexa that you want it reordered and it will happen just because you told her to do it. Your saved payment options will work for you and you don’t have to do anything more.

There are new items on the horizon. As voice commands within the car are becoming more popular, voice payments are likely to follow as newer cars with the technology become the norm. Google Home seems to be leading the trend as they are already “talking” to auto makers like Nissan, BMW and Hyundai. And then earlier this year MasterCard and Samsung, as well as Amazon and LG, joined forces to allow their customers to order food through voice using their smart fridges.

So as our technology gadgets get smarter, our voices may start replacing those keyboards we have become so accustom to when using our computers. Banks like Capital One, USAA and US Bank are already testing voice technology applications with the likes of Alexa and Cortana (Google). So be on the lookout as those smart devices raise their I.Q. levels.

Mobile Banking

Most of us have gotten on the band wagon when it comes to mobile banking, but there are still some people lingering out there. As debit and credit cards move over to the EMV chip and the act of writing a check becomes practically obsolete, traditional banking methods will become less of a need. So why is this trending when we are already active in this area? Well, mobile banking is changing as technology does and consumer needs help steer what options will be available and developed for the future.

Therefore, this trend will remain important to the banking industry with the growth of consumers using their mobile devices over their personal computers. While this trend is being driven by the large population of millennials, the ease and use on these applications are catching on with everyone else too.

Investment Applications

If you struggle to save there is an app for that. Several smartphone applications have surfaced that can help you put away some money and invest with it all at the same time. One such app is Acorn, which is an investment tool that basically invests your spare change. Upon registering, you link your account with your bank account and every time you spend money with your linked banking card(s), the total is rounded up and invested for you by a pre-determined investment portfolio.

Accounts are setup up for purchase as well as one-time and monthly investments. It’s called micro-investing and while you can’t rely on it solely for your retirement, it’s definitely an easy add on to your retirement plan. Just note that these investments are not insured by the FDIC as is your regular banking institution.

Pay with Your Phone

Even with the abundance at ATMs around, lots of people still don’t carry cash yet most have their phone in their hand nearly at all times. The two big phone operating system players, Android and Apple, have come up with their own way to drain your bank account for payment on goods and services – meet Android Pay and Apple Pay!

Yes we know these two players aren’t all that new but Samsung Pay is and they change the playing field somewhat. Currently, retailers must have a compatible device to accept payments through Android Pay and Apple Pay. But Samsung Pay has a new technology (sorry Apple users, you are out of luck for this at the moment) called Magnetic Secure Transmission that allows a merchant’s reader to view the payment as if it were a strip on the back on a card. This is a game changer in the banking industry as it gives a big edge over the other two competing payment applications.

One thing is for certain, technology and millennials are the new driving force in the banking industry. Trends now and into the future will be led by this generation as we discover new ways to make payments and access our funds. So learning to manage your funds better will be critical in the future because the teller and bank manager will be few and far between if these trends expand further.