7 financial trends this year - are you keeping up?
With half the year nearly gone its now or never to make sure you are on top of the finance trends taking centre stage in 2018.
Riding the payWave
Cowabunga dude, you can now pay for your morning cuppa with your phone or watch but we’ll be riding the new payment technology wave well into the new year. The past 12 months might have seen wearable payments become commonplace but we’re also set to have SoftPOS tech drop halfway through the year thanks to Commonwealth Bank, so that you can receive payments on your phone as well and who knows what else we’ll be banking this time next year.
Pay your friends back right this second
Splitting the bill at dinner or paying a mate back for buying the movie tickets is set to get a whole lot easier next year thanks to the incoming New Payments Platform. Aussies will be able to make real-time, instant funds transfers between bank accounts without that annoying couple of days of lag time. The only downside is you’re going to have to think of another excuse for why you haven’t paid your mates back other than, “oh, it mustn’t have arrived yet.”
Your loan, your rate
A move to positive credit reporting was announced this year, but it won’t actually be mandated until July 2018. If all the fuss is to believed next year could be the year you’re offered tailored interest rates based on how financially naughty or nice you’ve been with. When announcing the changes, Treasurer Scott Morrison said at the new form of credit reporting should lead to one thing - a better deal on your mortgage, your personal loan or business loan. Let’s hope so!
Step aside fintech, insurtech is here
Fintech is so 2017. Aussies are set to have their insurance products and premiums revolutionised in the coming twelve months if the hype is to be believed. This year gave us a taste of what’s to come with products that have the potential to make serious improvements to our car and home insurance premiums. For example, the the super-smart Gswitch currently on trial in Queensland gives Aussies complete control over their home’s energy use and QBE’s Insurance Box tracks driving habits, rewarding safe drivers. These technologies are part of the broader insurtech trend that is set to drive down insurance premiums, with Aussies tipped to save hundreds over the coming years.
Energy prices to cool, eventually
Was there a bigger consumer story in 2017 than rising energy prices? Probably not, but recent predictions from the Australian Energy Market Commission will have Aussies wiping the sweat from their brows in relief as energy prices are predicted to cool over the next couple of years. All you’ll have to do is survive the sweltering Aussie summer before prices start to decline and you can do that with these cheap energy plans in your state.
The next gen of credit card rewards
With the values of rewards cards plummeting over the past year and the rise in popularity of alternative payments platforms like Afterpay, credit card providers will be looking to incentivise customers in with a new generation of plastics. First of all, we’re seeing a whole range of new exclusive social perks like Amex rewarding customers with discounts at their OpenAir Cinemas across the country this summer. This year saw Citi give its rewards card customers the flexibility to personalise their rewards points. It’s Select and Credit initiative allows customers to select exactly what they want to spend their rewards points on and nab a credit voucher that allows them to do so but how else will our plastics change in 2018?
RBA will hike interest rates (maybe)
Okay so we might have said this last year, but 2018 is the year interest rates finally get a bump. Despite the Reserve Bank of Australia resisting the temptation to move on interest rates in 2017, many experts and financial analysts have a rate rise penciled in for late next year or early 2019 at the latest.