Every human activity in daily life is never separated from money. From the past until now money is the most important element in human life because it is used as a means of payment. But the difference is that currently the money in circulation has changed and it will continue to transform with the times.
Along with the passage of time money has also experienced the development of increasingly sophisticated technology. Therefore, there are at least some major trends that can understand the financial sector in the future. To find out more, here are some future money transformations.
What are the Future of Money Transformation?
With digital money here, you can make payments for goods and services with just a tap of the screen. You can use the mobile app or by scanning your phone in the store. In China itself, people can pay by just showing a smile.
This is possible because there has been using a facial recognition payment service, namely Smile To Pay. Basically, digital money here refers to all forms of payments made electronically. Simply, payments and money transfers can be done online.
Therefore, digital money can involve smartphones, credit cards, applications, telephones, money transfers, online banking and cryptocurrency platforms.
Disappearing Physical Money
Digitizing money can cause physical money to gradually disappear. Therefore, digital money will continue to grow in the future. If that sounds far-fetched, then remember that there are over 600 ancient currencies that have disappeared in just the last 30 years.
And this applies to major currencies as well, for example the European Central Bank has explored the introduction of the digital euro at this time. What should be noted is that there are consequences of digitizing money. In the future it is possible that personal data could be embedded in money and other transactions.
An example is a payment system which is done automatically based on your identity. This is something that is quite informative but also carries a big risk, because it involves data security and identity fraud.
The Emergence of Financial Applications
Supporting financial digitization will result in the emergence of financial applications. One of them is a digital wallet. Its function is to provide services on an application basis which allows users to pay for goods or transfer money to other people.
In fact, the application will later expand into the world of lending. As has been the case today, the “buy now pay later” payment method has become a trend. Today’s society tends to prefer this method of payment.
Personal and Intelligent Service
The digitization of money can create a huge stream of data about what consumers actually do with their own money. For example here the UK Independent Bank, metro bank, has a smart tool which is called insight. The tool can analyze consumer spending patterns and make predictions about which customers may exceed their credit limit before their next paycheck. Today’s modern society tends to expect financial services that are much more personalized and intelligent. This is of course due to its more practical nature. Therefore, the use of physical money in an increasingly modern era like today is less relevant and in demand.