Hello 2020

Five Key Trends for the Financial Services Industry in 2020

What does your vision for your finances look like in 2020? How are you planning to improve your financial stability, decrease debt, and increase your ability to plan for the future? Take a look at these five key trends in the financial services industry–and how they have the potential to impact your finances for the coming decade.

1. Microtransactions will become increasingly popular across a variety of platforms.

Chances are, you’re already familiar with microtransactions: small, usually in-app or in-game purchases that allow you to make the most of a particular service or application. Across the financial services industry, developers are discovering that those microtransactions are becoming increasingly popular. They appeal to the average consumer, since they’re usually comparatively small in nature, and they allow for a variety of opportunities. While these can increase opportunities for small business owners, those microtransactions are also something you must monitor with care.

2. Many individuals are turning to the sharing economy as a model for financial services.

You’re no longer required to go through a bank for many of your key investments. In fact, thanks to the sharing economy and the wealth of information available via online platforms, many individuals and their financial advisors are able to get a better idea of exactly what services they need, from loans to investments–and they may not have to go directly through a bank to find them. Today, you don’t have to visit physical bank locations to shop around for the best loan rates or find the best return on your investments–and if you aren’t taking advantage of those options, you’re leaving money on the table.

3. Localization is growing thanks to AI and robotics.

Increasingly, modern businesses are moving back to their local roots. They’re taking a hard look at the advantages of AI and robotics, and they’re finding that these methods can increasingly reduce costs–even over using outsourced business services from other companies. If you’re looking to open your own small business, now is the time to take advantage of key growth in these sectors–or potentially to invest in some of the businesses that are helping to grow these trends.

4. Regulation and security is becoming increasingly important.

Many banks and other financial industries are discovering that data security and regulation are more important than ever. While you have the opportunity to control many of your own investments, it’s critical to do your research and make sure you’re working with a trusted provider who will provide the security you’re looking for. Lack of security can lead to financial catastrophe for many people–and you don’t want to find yourself caught in the middle of those disasters. Not only should you choose investments and financial institutions that offer that high degree of security, adhering to government regulations, you should be more careful than ever about the security of your personal financial information.

5. Physical money is becoming less common.

Across the UK, more businesses than ever are choosing to deal almost entirely in non-cash transactions. Most people no longer carry much, if any, cash at all. Not only have transactions across borders become easier than ever, so that there’s no need to calculate important exchange rates and other data, many people are finding that they no longer have a need for physical cash. This may impact the way you choose to do business, make purchases, and manage your money throughout 2020 and beyond.

Are you ready to get your finances in order for the next decade? See our services page or set up an appointment at  clm@fhmanning.co.uk to sit down with Claire over coffee and get a better picture of your financial standing and what steps you need to take in 2020 and beyond.