[Infographic] Top 5 Financial Trends in 2020 for Better Money Decisions

1. Mobile payments are replacing cash
   
   With the advent of finance apps enabling transactions in various stores via NFC or QR code scanning, the cashless movement is catching on pretty quick. Gone are the days when you have to run to the nearest ATM so that you can pay for your purchase. Mobile payments make it possible for people never to be short on cash, whenever and wherever.
   
   It’s quite common to see counters not just entertaining cash and credit payments, but mobile app payments now, too. For instance, in the Philippines, it’s quite common to see kiosks with GCash, AliPay, and PayMaya, to name a few.
   
   What to do: Since mobile payments are a novelty in some stores, many participating apps may be introducing promos to entice users to sign up and use their app. It’s worth checking out the official apps of your banks, third-party money lending apps, and other mobile wallets to take advantage of these freebies.
   
   
2. Preferring big tech over big banks
   
   The younger generation is slowly moving out of the traditional banking landscape and opting for a digital, mobile-first experience. This includes apps for budgeting and savings, managing debt, paying bills, and more.
   
   Traditional banking, such as visiting a branch nearest you and making calls to banking agents, are now viewed as cumbersome and time-consuming, with digital banking services regarded as convenient and more comfortable to use.
   
   Some brilliant companies have also started creating banking alternatives for customers who can enjoy money management without necessarily having a bank account, which can be helpful for expanding financial literacy to those who aren’t as exposed to it.
   
   What to do: Since mobile payments are a novelty in some stores, many participating apps may be introducing promos to entice users to sign up and use their app. It’s worth checking out the official apps of your banks, third-party money lending apps, and other mobile wallets to take advantage of these freebies.
   
   
3. Owning multiple financial management accounts
   
   Today’s users are now more particular with the type of treatment they receive from their bank providers than before. With many options and alternatives available, it’s easier to switch and look for another institution that can satisfy your needs.
   
   Overall, millennials and Gen Zers are less loyal to financial institutions compared to the previous generations. They are 2.5 times more likely to switch banks than baby boomers, and 1.5 times more than Gen Xers.
   
   What to do: Follow the trend and diversify your assets. It won’t hurt to try and branch out from your current bank if you see potential in other institutions!
   
   
4. The rising popularity of mixed investments
   
   The Great Recession took a toll on people’s overall interest in stock market investments. This paved the way for other options to take center stage, thus broadening the playing field and letting financial institutions come forward with creative investment plans.
   
   Some top examples are real estate investments, cryptocurrency, and variable universal life insurance. Around 83% of millennials have expressed willingness to traverse these kinds of options compared to 52% of the older generations.
   
   What to do: Exploring new investment vehicles will be a trend that will continue to be popular—and not just in 2020. It’s also worth checking out new trends and see which one is most feasible for you.
   
   
5. Micro money-lending will change perceptions on loans
   
   Borrowing money is part of most adult’s lives, from student debt to housing mortgage. Traditionally, people resorted to personal loans from banks or even loan sharks, especially those without bank accounts.
   
   Now, fintech companies have devised third-party money lending apps to revolutionize the notion of borrowing money. Loans are traditionally seen as a mix of paperwork, credit investigation, and trepidation for bank approvals. Part of the increasing use of tech in the finance industry is the introduction of microloans.
   
   With fewer requirements, people are opting for this instead of getting a personal loan in a bank. In the Philippines, famous examples of these third-party money lending establishments are Cashalo, Tala, and Home Credit. This diversifies the money management options of the people and gives them more ways to budget.
   
   What to do: Even though banks do not govern money lending apps, necessary background checks will be done. It helps to have a good credit score, reliable references, and a good record of being able to pay on time so that you can enjoy this perk.

Better Money Making Decisions Start Here

Part of being intelligent in handling your money is knowing what the future holds. Expect more tech trends to influence the way people manage their money, from saving and borrowing to spending and investing.

But while trends are always fascinating and worth checking out, some things in the finance world will always stay relevant—like setting up an emergency fund or looking for the right life insurance product.

If you’re looking to mix your trends with other traditional and well-trusted money moves, you may want to look into getting insurance. BPI-Philam has Bancassurance Sales Executives ready to discuss your options about getting life insurance in the Philippines at any of its 900 BPI branches nationwide.