DCR Strategies 2020 Fintech Predictions
The following financial trends for 2020 are very exciting predictions for the financial sector. As we look ahead to the New Year, our Executive Team has put together a list of their Fintech predictions. Among the top predictions are:
- Acceleration of Cash to Digital
The ever growing number of smart phone holders and tech savvy millennials drives the push to digital banking. Predictions are that global smartphone adoption will rise to 79% of the population by 2025. (Beyond the Basics: How smartphones will drive future opportunities for the mobile money industry)With almost every phone having capabilities of conducting transactions and such a large percentage of the population engaged in digital commerce, there is sure to be a rise in demand to digitize cash and take advantage of the digital ecosystem.
- Rise of On Demand E-commerce
By 2025, there will be more than 25 billion devices capable of interacting with the internet. With this immense number of smartphones on the market, on demand commerce any time/anywhere at the touch of a button will continue to grow and evolve in 2020. Virtual cards will continue to flourish for on demand e-commerce in 2020. The TruCash wallet makes transferring money and shopping that much easier for the on demand needs of the consumer. Look out for virtual card capabilities on the TruCash wallet app early this year.
- Banking to the Millennials and ‘Underbanked‘
With the rise of prepaid credit card options, banking to the millennials and ‘underbanked’ becomes more accessible, much easier, and affordable and requires no credit checks. Having a prepaid card with an attached Wallet application provides substantially less associated fees then standard bank accounts. Prepaid provides better budgeting options when tracking money spent and has real time notifications of spending. Prepaid also provides an outlet for instant payments to the underbanked such as the elderly, immigrants, temporary workers or underprivileged in real time with credit card capabilities. Continue to look for advanced budgeting, peer-to-peer (P2P) and savings features from Fintech’s vs. traditional banking relationships.
- Integration of Payment Choice
For the economy of 2020, businesses need to be able to offer choice and consumers want to have choices to pay and to be paid. The pre-paid sector can provide these “choices” for all consumers (the banked and underbanked) and therefore will no doubt see vast growth in the number of prepaid cardholders including the usage of mobile banking apps. Consumers are continuously adapting to digital banking and looking at Fintech’s for banking solutions vs. traditional banks.
- Tech Giants will continue launching Banking Products without becoming Banks
There is an obvious appeal to this. Having Tech Giants meet PCI compliance regulations and certified to play in the financial services industry, generates new revenue streams and very valuable-analytics of customers financial behaviours that drive enhancements and growth of digital banking.
- Cashless – Cash is no longer King
Countries continue to look for cashless options in a number of areas. Two main trends in the cashless movement are notable in Transit and Rewards.
Around the world, trains, taxis, buses and trams are going cashless through Prepaid Cards, apps, Apple Pay and other methods for access to this important service. Riders will never again have to worry about exact change to get where they are going.
Rewards programs are on the rise in popularity. Converting points to cash for products or money off of goods is increasingly popular and will continue to gain momentum in 2020. Look out for DCR Strategies upcoming launch of the new generation Points to Cash Program this year.
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