It is no secret that millennials prefer to use mobile apps instead of walking into a bank – and with good reason. Mobile financial apps offer a way to automatically invest, make purchases or transfer funds, and provide additional security options to protect customers from identity theft.
According to a 2015 survey, 53% of smartphone owners with a bank account used a form of mobile banking.
But which app or process has a strong chance of significantly changing how people bank or make purchases in the next few years? Four financial experts from Forbes FinanceCouncil offer their predictions.
All photos courtesy of individual members.
Clockwise from left: Ryan Marquis, Charlie Youakim,Vlad Rusz, Jeremy Almond.
Acorns simplifies investing to the point that anyone with a smartphone can launch a diverse portfolio and makes saving or investing fun. I even set aside time to use it with my kids and compare portfolios.
They are having fun while learning valuable lessons about investing and building wealth. These days, we want things to be both simple and on demand, and Acorns offers the best of both worlds.
- Ryan Marquis, Plastc, Inc.
2. Venmo And Paypal
The trend that will win is cardless payments. Cardless systems are easier to use, sign up for and maintain.
The two current apps that pop out to me today are Venmo and Paypal, but I believe it's going to be a payments future filled with significant near-term change. Watch out for bitcoin-based companies, as well.
- Charlie Youakim, Sezzle
3. Blockchain Technology
Blockchain tech represents the most significant change to banking.
With over one-third of the population either underbanked or skeptical of banks, blockchain is better equipped to address fundamental issues of financial inclusion, costs and fairness.
Emerging blockchain-based companies like Abra for remittance, PayStand for businesses, and Circle for mobile represent the next generation of fintech.
- Jeremy Almond, PayStand
4. Samsung Pay Or Apple Pay
Similar to the retail store, retail banking will go through a transition period. As millennials and future generations become the breadwinners within the workforce, a significant shift in banking and making purchases will occur.
It is my belief that mobile apps such as Samsung Pay or Apple Pay will change banking, buying, investing, saving and vendor payments forever.