ON THE HORIZON - PAYMENTS
we’ll see a new wave of flexible and personalised credit offerings that will let users choose how they repay credit depending on what suits them.
Beyond 2022, smart credit options may even be able to use AI to decide the most affordable way for users to pay, whether it’s a loan, monthly instalments or paying off immediately via debit. We anticipate that this could drive change in how people use their revolving credit cards. In response, credit firms should re-evaluate their offerings and make sure they are launching modern, digital credit solutions that will help them to meet customer demand.
GOVERNMENT AND CONSUMERS ALIKE WILL CONTINUE THEIR CALL FOR SUSTAINABLE SPENDING We expect that consumer pressure to act sustainably will continue to increase in the year ahead. Deloitte found three-in-five UK banking customers wanted their provider to ‘do more to create a positive social and environmental impact’. Pushing this agenda further, the UK government will require financial firms to publish their net zero plans from 2023. As a result, banks and fintechs will be pushed to take more solid steps – taking stock of their products and services to assess their environmental impact and ensure that offerings are as green as possible.
Beyond this, smart wallets and recycled card
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programmes could help consumers to make more sustainable payment decisions. In the near future, we may even see smart wallets start to make green decisions on our behalf at the point of purchase. Tis type of service could be vital for attracting younger generations. Our recent study into the future of European payments found 31 per cent of 18–24-year-olds surveyed would be comfortable with AI making automated decisions on their behalf to choose the most ethical way to pay.
OPEN BANKING SET TO DISRUPT THE MARKET WITH PAYMENT INITIATION As payments become more personalised and data- driven, open banking has a great opportunity to deliver new opportunities through payment initiation. Tis technology allows customers to connect to their bank directly and authorise transfers from their account, all without leaving their mobile or web environment they are buying from. Open Banking will be vital in this process, connecting customer data from multiple solutions to give users a highly integrated and customised payments experience. Open banking can also boost visibility into customer purchasing data to improve the speed and accuracy of decision-making in credit. Tis can give customers a fairer assessment based on spend and lenders reduced risk of delinquency when lines of credit are approved.
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