What’s the impact of digital on financial services?
How are financial services impacted by digital developments? Here are the most important insights selected by our analysts, with a focus on retail and electronic payments evolution over the last years, and in the future.
Retail: Payment change is a slow process
Payment is an integral part of the retail transaction. Some of the largest retailers today have come to power by making payments more convenient.
But variance between countries is significant. Germany and Japan, for example, remain cash-heavy, while Venezuela and Nigeria show relatively high card usage.
Discover all payment preferences around the world: : Retail Payment Preferences Around the World
How online retailing has affected a variety of industries:
The conversion of online retailing from store-based retailing has impacted financial services and the way consumers pay across the world. In emerging markets the transition has been fastest in Asia Pacific, and allowed non-bank competitors into the competitive landscape for financial products and services.
It has also affected a variety of industries including the financial service space and consumer payments. Traditional mainstream financial institutions must now catch up to alternatives that have entered the market to address consumer segments that were previously overlooked.
Get more insights about this transition: Impact of Online Retail in Asia Pacific on Financial Services ad Consumer Payments
Cards and electronic payments increase: what impact for the financial actors:
Cards and electronic payments continue to take global consumer payment share from cash and other paper payments.
With greater card spend however, there has been a rise in fraud in several markets that could further move consumers towards more secure digital payment alternatives. The number of banked consumers in the 47 researched markets increased by 100 million from 2016 to 2017. This continued momentum will further drive card payment value over the forecast period.
Interested in more? Read the Consumer Finance Global Overview