Just over 20 years ago, the way most people saved money was simply by putting it in a bank, investing it in stocks and bonds through brick-and-mortar brokerages, and paying into their retirement funds.
That’s much different now with the emergence of new technology such as the internet.
Every year, there seem to be more and more companies innovating the ways we can save. Some are valuable strategies while others may be cleverly disguised scams, so be sure to do a lot of research before you work with any businesses. However, with so many different ways to save, there’s bound to be at least one strategy you can implement into your everyday life.
Cryptocurrencies
Cryptocurrency, simply put, is a medium of exchange done primarily through the internet. This different form of currency uses cryptographic functions in order to handle financial transactions.
The main distinction of this medium rather than a government-mandated currency is the fact that it is so decentralized. This means that no single authority is able to control or regulate the currency.
By eliminating the middleman, there are both benefits and drawbacks to using cryptocurrencies. One of the benefits is the lack of transactional fees since nobody has to be paid to handle the money. However, the use of cryptos in criminal black market transactions is much easier than traditional cash, so there can be some concern there.
Before you jump headfirst into investing in “online coins,” be sure to do plenty of research so your investment doesn’t become a big loss. There are many different resources you can use to learn about cryptocurrencies, but keep an eye out for misinformation as this technology and the research around it is relatively new.
However, some of the best books for crypto trading are those that are written by reputable sources such as Cryptoassets, Blockchain Revolution, or The Internet of Money. If you’re a bit less savvy on the technical side but still would like to learn, The Little Bitcoin Book is a great start.
Online banking
Banking online rather than a physical location can actually save you both time and money in the long run. There has been a slow, but steady increase in consumers going digital. And with more banks offering these digital options, you might want to consider signing up with one if you haven’t already.
One reason to switch is the fact that physical branches are starting to charge more for things like teller fees, account management fees, and even minimum balance fees. They need to do this in order to keep up with the increasing up-keep of these brick-and-mortar locations.
Many different online-only platforms offer incentives like no or reduced ATM fees, no minimums and some even let you get paid early. Plus the convenience of being able to access your account anytime through your phone is a huge plus for many. With innovation in the banking delivery model, the lowered cost of maintaining branches through online means or even institutions going completely online will become more and more prevalent in everyday life.
Artificial intelligence
Artificial intelligence —or AI— is also helping shape and improve the environment of both personal and business finance. Things like predictive banking are quickly becoming more reliable, and therefore, profitable.
By consolidating both internal and external data, these technologies are able to build strong predictive profiles of their clients in real-time. With the machine running all the complex algorithms, it leaves a lot more time for the finance professionals to mentally process and make assumptions from that data.
AI won’t necessarily replace humans in the finance field, but instead, it will be a useful tool for humans to become significantly more efficient and profitable
This transition to banks using AI won’t only make you more money, it might just lead to a change in the way we bank in general. There might even be an elimination of things such as checking, loans, and payments in favor of a more universal cash management solution humans have yet to come up with.
It could eliminate the need for excessive IT departments as most of those processes could be automated instead. Many banks are also starting to offer “digital assistants” to aid in giving more personalized financial care to each of their customers. The ways financial institutions will be able to use AI is endless, but only time will tell.
Universal payment methods
With things like cash cards and e-payment methods, the days of needing to carry physical cash or using credit cards may soon be long-gone.
Nowadays, instead of only being able to use your phone to buy online-only products, you can actually use your phone to make payments directly at physical points-of-sale. You can even pay through social platforms like Snapchat and Facebook.
It seems like every corporation is trying to dip their feet into the finance realm nowadays, so be sure to keep an eye out for great incentives offered by these companies if that trend continues.
With the advancements in biometric technology, being able to pay for goods through a simple fingerprint scan or even a selfie isn’t that far off. It is estimated that by 2023, nearly 2 trillion dollars will be authenticated through biometrics.
And with nearly 90% of cell phones already able to support this change, it is quite clear that this will be an avenue many different businesses will explore. However, with an increase in data breaches in 2019, it might take some time to gain users’ trust with something as new as this.
It is important to note, though, that biometrics are actually much safer than traditional passwords and pins, so don’t write this new method of authentication out of your life completely.
Saving money can be tough at times with things like bills and other necessary expenses. The future of finances sees that changing. Allowing individuals to save money more efficiently, all while maintaining an incredibly high ease of access, are the goals of many modern financial institutions.
It’s up to us as consumers to pick and choose the very best of these newer services. You can do that through thorough research and a little bit of fair skepticism. Be sure to also share what strategies worked for you, and what institutions work with your lifestyle in order to keep the conversation going!
