PEOPLE WATCH MONEY, MONEY, MONEY JUNE 2018 PEOPLE WATCH

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1 MONEY, MONEY, MONEY JUNE 2018

2 FINANCE TRENDS IN 2018 As technology is incorporated even more so into and finance industries are being impacted, and at a rapid pace. lives, the banking The Internet of Things, cashless and card-less payments and less time in branches are all impacting the finance and banking worlds. More than ever, customers are now able to navigate the finance category. They are empowered with a wealth of information, access to technology and huge expectations. They are after speed, convenience and value but also still need that personal touch and service take a look at a few trends impacting the finance and banking industries.

3 TRENDS IN FINANCE FOR 2018

4 number of devices connected to the Internet of Things (IoT) is set to increase from 6.4 billion in 2016 to 20.8 billion in - Finance Monthly, 2018 SOURCE: 7 TOP PAYMENT TRENDS FOR 2018, FINANCE MONTHLY, JAN 2018

5 1. TECHNOLOGY DEVELOPMENTS Technology developments across the financial industry has provided customers with convenience across their banking and financial needs, with more detailed data at their fingertips and higher expectations. We are seeing so many apps that enable people to better manage and track their finances - Acorns, track my spend, pocketbook. These provide customers with financial advice, support and data whenever, wherever they need. Consumers are also increasingly expecting their Internet of Things devices to enable more than just carrying out tasks automatically; they also expect them to facilitate payments. For example, consumers with connected fridges can expect to see depleted items restocked and automatically paid for. Visa is also working with Honda to develop technology that can detect when a petrol is low and enables users to pay for a refill using an app that is connected to the in-car display. SOURCE: 7 TOP PAYMENT TRENDS FOR 2018, FINANCE MONTHLY, JAN 2018

6 71.7% of Australians used Digital Payment Solutions - Roy Morgan Research Market Update, Press Release, 12th June 2018

7 2. WIRELESS PAYMENTS Wireless payments is a concept already being implemented more frequently online will also be used in brick and mortar stores. In the near future, consumers will no longer need to reach for their cash or a credit card; instead, they can pay wirelessly in passing whether from their smartphone via Bluetooth, using the RFID chip in their debit card, or automatically by facial or voice recognition. This will make the transaction seamless, and leave little time for consumers to rethink their purchase. SOURCE: 7 TOP PAYMENT TRENDS FOR 2018, FINANCE MONTHLY, JAN 2018

8 42% excited about using companies like Google, Amazon, Apple or PayPal for their financial - Raddon Research Insights, 2018

9 3. THE IMPACT OF GEN Z Almost 70% of Gen use mobile banking apps daily, with 68% wanting instant P2P payments. This immediacy-centric, digital-native, mobile-first generation uses online, mobile channels more than other generations and not just for entertainment and looking at cute cat pictures. Gen Z push for seamless, frictionless transactions as well as flexible payment options including Online, Pick up In- and Now, Pay with a personalised and tailored experience. This Gen Z demand is revolutionising the banking and finance sector. SOURCE: TOP 10 TRENDS IMPACTING THE FUTURE OF PAYMENTS, THE FINANCIAL BRAND, 2017

10 3.6 billion internet users are projected to access cloud computing services, up from 2.4 billion users in - The Statistics Portal, 2018

11 4. THE CLOUD In 2018, adoption of the cloud in banking will increase, but with the focus on security and regulatory compliance continuing to be front and centre. Expect to see enterprise-wide middleand bank-office applications start to move into the cloud. Banks and credit unions will feel the push to create more cloud-enabled business models in 2018, while the use of open APIs will drive consumer applications to the cloud even more. SOURCE: 10 BIG FINANCIAL TECHNOLOGY TRENDS FOR 2018, FINANCIAL BRAND, JAN 2018

12 you give bad service, your competitors will - Kate Zabriskie

13 5. A RENEWED TRUST FOCUS The big consideration for 2018 will be a renewed focus on service in particular, how do banks help you manage the tools available to meet your essential needs where and when you need them, and how well does it understand and help you achieve your bigger financial and life goals? The industry is increasingly competitive on price and there are strong moves to challenge the dominance of the big banks - one of the only ways to compete will be on high-value service and assistance, and the best are investing to meet that challenge. SOURCE: FIVE FINANCIAL TRENDS FOR 2018, PEOPLES CHOICE CREDIT UNION, 15 JAN 2018

14 So what now?

15 WHERE TO NEXT? The financial world is an ever-changing and developing industry, with so many technological advances, the finance industry still needs to keep their customers at the core of everything they do. We know that 80% of finance customers need a lot of information before purchasing (within the category), and 53% say their banking/finance decisions are not solely based on price they are looking for ease & additional benefits. Therefore a 360 degree approach for financial institutions to their customers is a must. Studies show that on a regular weekday, for finance products occurs in the late evening hours. However, for these products are more likely to occur during 11am-3pm. People are open and receptive to financial messages reaching them at the right time and place is essential to influencing their financial decisions, increasing brand awareness and brand loyalty. Connecting with your audience at the right time with relevant messaging is 19% more effective. SOURCE: ADSHEL PATH TO PURCHASE STUDY, POLLINATE, 2018 HT&E MIND & MOOD, -INSIGHT, 2015

16 THANK YOU For more information on connecting with consumers contact us today. JUNE 2018