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Upcoming Digital Transformation In The Field Of Money Saving

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Upcoming Digital Transformation In The Field Of Money Saving

It was predicted not long ago that the way we use and save money would change with technological and digital transformation. And the shift has just begun. You are going to see many new trends in the market in the 21st century. If you observe the economy globally, you can identify the early signs like the rise of cashless transactions and digital currencies.

We are here to provide you with a heads up! Let’s look at the 5 major ways in which money saving will be reshaped in the future.

Cashless Economies Of The Future

All the developed economies of the world are drifting towards going cashless. But china is pedalling faster than most other countries. It is planning to become a cashless society in the coming years with the help of its digital currency Yuan. Cash transactions are rapidly declining in the United Kingdom, Sweden, South Korea, and other countries as well.

Experts believe that cash is disappearing faster than most economists can predict. But it comes with a risk of being difficult for older people who are not in touch with technology. The issues like areas with poor internet connectivity and the rise in digital frauds also need to be considered.

Banks Losing Out To P2P Banking & Lending

After digital banking changed our banking system drastically, P2P lending (Peer to Peer lending) is the next significant shift. It ensures transparent, safe, and efficient transactions. The credit of the emergence of the P2P lending system belongs to the non-bank start-ups, also known as fintech. P2P banking eliminates the middlemen. Thus it can provide better interest rates on both investments and loans.

P2P lending is online and mainly through payment apps. Their main advantage is that they are customer-centric and operate on open platforms. Something which is still missing from the operations of traditional banks!

Open API Enabled System

Open API (Application Programming Interfaces) or open banks provide a personalised analysis to consumers about their upcoming financial needs, affordability, and profit-bearing saving schemes. Therefore, API’s artificial intelligence is emerging as a powerful tool for finding outright types of investment ideas according to individual consumer’s profiles. Open APIs are proving to be helpful for both public and banks.

Experts believe that AI stores and bots saving money through automation can be a common scenario in the future. At the same time, their regulation and security of client’s data is a critical factor.

Multiple Currencies

When it was first predicted that multiple currencies could be floating in the market, no one knew it would become common. It is not limited to a few giant multinational conglomerates anymore. Many online retail chains and popular brands launched their membership points and wallets as alternate currencies. This is happening by giving extra benefits to customers. You can find multiple examples like the widely popular Starbucks wallet and Ola money.

These alternate currencies are like interest-free cash flow for the companies. The consumers are also happy to get extra loyalty points and stars. Can you think of a better win-win situation?

Programmable Money

Programmable money or cryptocurrencies comes with a smart contract. Therefore currencies like bitcoin aren’t used so far for many transactions. But the popularity of cryptocurrencies established a new perspective towards money. And that is money being viewed as data with multiple values and distinguishing factors. It alters the way you interact with money and makes dealing with cash uncomplicated.

Currently, it is one of the popular types of investment ideas and is used for limited types of transactions. But programmable money is believed to get a broader scope in the future with progressing digital transformation.

Key Takeaway!

You are going to witness innovative banking patterns, capital formations, and investment ideas. It is advisable to be vigilant and informed about the digital transformation of money taking place around you so that you can park your money in safe and profitable channels.

About The Author
Aatish Khanna works with the Content Marketing team at Money Club - a digital chit fund platform that makes saving, borrowing, and investing your money more efficient. He writes on topics to help his readers understand processes so they can make better financial decisions. He's the go-to person that his family, friends, and colleagues turn to for all their money matters. He loves to play board games and aspires to one day build his one finance-related board game and app.
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