Digital technology is changing the way we do business across every industry. Business Insider recently released predictions for some big ways digital technology will disrupt six major industries in 2020. Let’s take a look at 10 front-and-center possibilities:
Prediction: European neobanks and U.S. neobanks will grow at the same rate in 2020.
Neobanks, or 100% digital banks, reach customers on mobile apps and on desktop platforms. The most successful European neobanks, Monzo and Revolut, and domestic neobank, Chime, are similar in size and know how to successfully grow and scale. These banks are also offering incentives including overdraft protection and early wage access to attract new clientele.
Prediction: More banks will offer mortgage loan applications via digital channels.
More and more consumers are opening loans digitally. The digital process is more efficient and less paper-intensive. Between 2013 and 2018, fintech-issued personal loans increased by 33%! Borrowers are looking for loan application processes that are quicker and less clunky. This demand will cause an increase in the number of banks that offer a “Digital Mortgage Experience” similar to what Bank of American now offers.
Connectivity and Tech
Prediction: Smart speaker sales to first-time owners will decrease in 2020.
On account of excellent marketing and a comfortable price point, nearly half of Americans already own at least one smart speaker so the pool of first-time smart speaker buyers will dwindle. However, because of their versatility and interconnectivity, sales will continue to increase as many U.S. households purchase subsequent speakers.
Prediction: Midtier cell phone sales will increase.
With the integration of 5G technology, the cost of high-end smartphones will keep going up. There are also some technical issues with the 5G integration. In response, chipmaker Qualcomm recently announced its plan to add 5G chips to midtier phones which will drive midtier phone sales in 2020.
Prediction: The U.S. government will address healthcare cybersecurity.
After numerous cyberattacks including a couple of crippling ransomware attacks on healthcare data this past year, 2020 will be the year the government is forced to act. This will come through government-funded minimum cybersecurity measures or funds hospitals can access to beef up their cybersecurity protocol.
Prediction: Largest e-health record companies will pursue M&A to combat competition from Google.
In response to a recent video Google released displaying an EHR tool, Epic and Center – the industry’s leading EHR software platforms – will acquire smaller EHR vendors in order to combat the rise of Google’s system.
Prediction: Spotify will grow to own 25% market share of podcast listeners and Apple Podcasts will struggle to maintain its hold on the market.
Spotify will expand personal playlist suggestions with their proven algorithms and appeal to their audience with exclusive content offerings. Meanwhile, Apple’s indexing emphasis will prove less effective at putting shows in front of on-point audiences and they have yet to secure exclusive content.
Prediction: Facebook will continue to lose young app users and its two new apps for young people will fail.
In the fall of 2018, Facebook launched Snapchat copycat app, Threads, and in the fall of 2019, they launched TikTok copycat app, Lasso, in attempt to retain younger platform users. U.S. users under 24 years of age continue to leave Facebook in droves while international markets and their Instagram platform are Facebook’s surest bets for engaging young people.
Prediction: Funding for fintech in South America will reach $1 billion in the first quarter of this year.
A large number of unbanked consumers in a climate without a lot of financial competition and with widespread smartphone usage paves the way for a fintech surge.
Payments and Commerce
Prediction: Amazon will expand POS financing opportunities across its website.
In order to retain more customers – particularly Gen Zers and millennials – when it comes to big-ticket purchases, Amazon will be offering more point-of-sale financing opportunities. Amazon may even enlist third-party providers in order to minimize the financing risk.
Please give us a call, if you find yourself overwhelmed by these technology predictions and need help determining which one(s) to incorporate into your business!