As society and the economy hit the mid-year mark for 2022, it provides the perfect opportunity to consider current progress. We can also assess how the future of business and finance might shake out.
Just as Henry Ford predicted flying cars for the automotive industry in 1940, finance gurus are looking to see the next big innovation. Moreover, they want to know what new developments will help solve current and upcoming issues.
How will business owners manage payroll for remote workers more efficiently in the coming years? Will the use of fintech make businesses soar in productivity? What is really happening with traditional credit card payments? What will the office of the future of business and finance look like?
With such questions and upcoming changes, it’s essential to understand how to make the most innovative moves in such a turbulent economy to save money for retirement and make the best decisions for yourself and your assets. To help you along the way, here is a highlight of the latest in corporate finance technology, staffing, and work processes.
Fintech Is Quickly Gaining Popularity
Companies and customers alike are swiftly moving toward the use of digital currency. Online banking has been around for a while, increasing customer confidence.
Now, fintech is rapidly gaining steam. Six percent of American households avoid traditional banking like the plague. Cryptocurrency — including Bitcoin, which is increasingly gaining interest as an alternative investment option — is becoming more well known. Apps like Venmo or Paypal allow consumers to directly send money digitally. They provide another example of fintech that has gained more awareness with average consumers.
However, even more, exciting applications are on the near horizon.
While v-commerce (paying with your car), payments between worlds in the metaverse, VR travel, and other exciting forecasts listed in FIS’ Future Payments Prediction for 2025 definitely seem like they are a few years away, there is a lot of compelling innovation that is already happening. At the core of the finance revolution, payment ease is driving growth in various industries. These include (but are in no way limited to) travel, grocery, and gambling.
Current fintech innovations will power consumer commerce for many years to come. For example, Airbnb, Expedia, AirAsia, and companies within the travel industry are in a global race to create super apps that cover the entire travel journey, from comparing prices to booking tickets to choosing where to stay.
Companies making decisions easier for consumers can likely create brand loyalty. As payment methods become connected through these apps, it makes it easier to offer personalized purchases and experiences. As statistics show, younger generations value experiences over materialistic purchases. Making those purchases easier is a way to influence how money moves as younger generations begin to hold more wealth and purchasing power.
Fintech Is Making Inroads Everywhere
Updated purchasing methods are also affecting grocery shopping. While Amazon has already introduced some grocery stores utilizing Just-Walk-Out shopping, more pay-without-contact options will be part of our shared future of business and finance.
Large grocers are also looking to consolidate the shopping experience. They’re doing this by adding banking as a service (BaaS), both for everyday consumers and their vendors. For example, one app that can process transactions and handle your banking turns the grocery chain into a full-service stop.
As the grocery store becomes a hub with EV stations requiring slightly longer charging times — grocers are getting clever about combining payments and convenience to keep customers loyal to one brand over the other.
The Outsourcing of Staff Management and HR
Another area that is seeing quick adaptation as consumers and businesses become more comfortable with technology is the area of staff management.
The Covid-19 pandemic forced workers to be adaptable and learn to be productive at home. But, at the same time, managers and company leaders had to adapt to managing a staff they don’t get to see every day.
As remote work and hybrid work environments gain popularity, employees expect flexibility. If a company doesn’t meet these needs, workers have other options. Similarly, The Great Resignation showed it’s an employee’s market. Additionally, employers have to find new ways to attract workers. As a result, staffing is the following major hurdle companies are clearing in this new age.
Revelo is a company in North America that works with Latin Americans to fill remote positions. More than 100,000 professionals have been hired by Revelo to manage remote tech needs. And this is just one staffing company. The need is there, and it’s growing.
Advantages of Outsourcing
Staffing companies can help with the hiring process by eliminating some of the responsibilities transitionally taken on by HR departments, like reviewing resumes. These types of undertakings are being outsourced more often, and the future points to that as a continuing practice.
Aside from hiring, additional HR responsibilities are being transferred to other companies. This allows businesses to increase their specialization and potentially reduce costs. In addition, for sourcing, HR can minimize administration time for smaller businesses and allow for more focus toward growing their business.
While recruiting and filling remote positions is one example of a company that can take on the administrative functions, other services can take over payroll processing, benefit plan management, and employee training.
There is a possibility of outsourcing too much. But, likewise, if costs outweigh the benefits and a company experiences a loss of profit, that’s a sure sign a change needs to happen. Additionally, as companies shift responsibilities to outside parties, they stand to lose some humanity and personalization.
As mentioned above, it’s an employee’s market, so it will be interesting to watch how workers respond to these changes and whether they decide to stay with companies who opt into outsourcing.
Employers Are Incorporating Education Services
Employee education programs are a common occurrence. In addition, more employers are offering education benefits for workers returning to school.
Additionally, there may also be an increase in companies offering education services for employees’ children by 2025. As turnover rates increase, employers consider new perks to offer their employees. By starting a school for children at the worksite, companies can limit workers’ commute time to drop children off at school or daycare. Similarly, if employees need a pick me up in the middle of the day, they could join their child for lunch.
Bandwidth is a global communications software company that has added a Montessori school to its campus. The company values in-person collaboration to come up with creative solutions. As remote options become more standard, enticing workers to return to the office in-person and full-time requires innovative offerings.
Additionally, investing in education could be a way to play the long game. As an employee’s children are educated by the company or on the company’s property, it’s likely as those children grow up, they will view the company in a positive light. This could influence children’s interests, purchasing habits, and career goals.
Using alternative learning applications is one way to train up-and-coming workers to think differently. Similarly, a new spin on the old-school corporate childcare center, adapted to fit modern needs and technology, might be the next-gen benefit GenZ workers are looking for.
Look to Innovative Companies Now to Envision the Future
Ultimately, all of these businesses are providing more fluid avenues for financing and investing in the futures of their companies. So whether trying to save money or time for your business, these companies are paving the way for innovation.
Society is increasing expectations for personalized and one-of-a-kind experiences. People are demanding excellent customer service and unique employee benefits. Companies must find ways to stick with the times or get ahead of the curve unless they want to be deemed obsolete.
To be ready for whatever tomorrow brings, businesses will need to evolve. These companies are predicting and moving toward an exciting future.
To be prepared for all the future will bring, you must be prepared. You’ll need to embrace new payment methods, consider customer motivations, and channel their preferences. Looking at innovation now can help us predict where we will be in five years down the road. Perhaps even further.
Experts project that flying cars will be available commercially by next year. We’ll have grocery stores that have customers paying without going to check out sooner than that. It’s hard to know what new and exciting changes are on the horizon, but it’s bound to be something extraordinary. Keep watching the changes occurring in companies like these to get a glance at the future of business and finance.
[Related: 5 Companies Bringing the Future to Us]