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How Living Services Will Change How You Manage Your Money


How Living Services Will Change How You Manage Your Money

Are we on the cusp of the next major wave of transformative digital services? Yes, according to a new report, The Era of Living Services by Fjord, a design and innovation consultancy and Accenture Digital, which offers business and technology services.

Living Services are the result of two powerful forces – the digitization of everything and "liquid" consumer expectations, in other words, people want what they want, when they want it. The study authors explain that living services respond by wrapping around us, constantly learning more about our needs, intents and preferences so they can flex and adapt to make themselves more relevant, engaging and useful.

Over the next five years, according to the report, sensors, the cloud, connected smart devices and real time analytics will combine to deliver a new layer of connected intelligence that will revolutionize the ability of brands and organizations to offer increasingly indispensable digital services to customers. Living Services are highly sophisticated and able to constantly learn and evolve, almost as if they are alive.

If it sounds otherworldly, it is, but not for long. It is likely to be reality. Living Services will impact all facets of life including our money.

Here’s how.

The report predicts that banks will increasingly offer customers a timeline where, past, present and Living Services (future) become an illuminating lens. For example, "Why is my balance like it is? What am I safe to spend now? What will my money look like in a year’s time?"

There will be a shift from a "statement" based mentality to an expectation of fluid snapshots of our wealth and status. Gradually this will change the shape of what banks have to offer.

"The move from static monthly statements to fluid ‘snapshots of wealth’ further supports the consumer empowerment trend we are seeing today," says Steve Shaw, vice president, strategic marketing for the Digital Banking Group at Fiserv. "Consumers want more active and up-to-date views of their financial situations, and technology gives them this access and control."

Financial institutions can use these snapshots as a way to drive greater engagement with their customers. By presenting the snapshots as a value-add, they position themselves as a trusted-advisor, rather than just a holder of money, points out Shaw.

Expect self-checking statements, digital receipts will be routed to banks for automatic checking against our spending history, which then alerts us to anomalies.

Financial institutions can also take advantage of the greater opportunity for cross-selling and upselling in the digital channel with this tool. "As consumers gain greater insight into their financial situation, they are more open to looking into other products and services that are tailored to their needs, at the time that they need them," says Shaw.

Digital transformation has changed the model of banking from something I focus on once a month, to now being part of our everyday lives. "With disruptive innovation happening across channels, and consumers using multiple devices and touch points, the customer relationship has evolved," says Shaw.

This is a significant opportunity for the industry. "Financial institutions need to take advantage of this transformation and be at the forefront of their customer’s financial lives, or disruptors will take away mindshare and wallet share," says Shaw.

So what might Living Services look like?

Expect self-checking statements, digital receipts will be routed to banks for automatic checking against our spending history, which then alerts us to anomalies.

Information about today will help us have a more stable tomorrow. Banks will predict our probable financial future by aggregating past behavior, allowing them to offer preventive advice for those who are about to go into debt. Your banker essentially becomes more of a financial advisor.

The report highlights the overall goal. "The ambition will be to link your bank (think money plus data) to other areas of your life." For example, if your bank account knows your power consumption, it could predict your future financial state more accurately. If your bank knows you are traveling, could it proactively negotiate better currency rates from ATM providers or foreign exchange dealers? Or set and negotiate the best gas prices as you are driving and prepay so you can drive away without physically handing over money?

The possibilities are endless.

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Comments
Anonymous
Anonymous   |     |   Comment #1
"The possibilities are endless."

Riiiiiiiight Faaaaaace...Follow The RED Line.
SIGN HERE...Your Big Brother Buddy is  #__/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/1
Anonymous
Anonymous   |     |   Comment #2
Quote: "Banks will predict our probable financial future by aggregating past behavior, allowing them to offer preventive advice for those who are about to go into debt."

More likely, banks will entice those who are about to go into debt to BORROW FROM THEM with less desirable terms and/or higher rates than otherwise available, so they can profit more at the expense of their customers.

Rest assured, this will be good for the banks, not the customers.
sinic
sinic (anonymous)   |     |   Comment #3
I know I am really old now.  I don't have a clue what they are talking about.

I want my old-fashion statement --the snapshot of assets that day.

I do not want some "algorithm" in the cloud that projects assets dynamically or any "wealth management".  These things are myths just like "wellness", "relationships with your doctor" or glue actually working.

sinic
Anonymous
Anonymous   |     |   Comment #7
Stupid people have no idea how the programs work today or in the future. Everyone thinks they are the center of the universe. The "program" will make me (and only me wealthy). Dumb fools don't realize this is the easiest way to manipulate herds into the abyss of predetermined winnings and losses. You, and everyone but of select few, will be fed enough crumbs to believe you're a winner. The algorithm (logic designed by someone determined to get as much of your wealth into their pocket as possible) will not serve you in the manner you expect. Never forget the true meaning of, "to serve man."
https://en.wikipedia.org/wiki/To_Serve_Man_%28The_Twilight_Zone%29
pearlbrown
pearlbrown   |     |   Comment #4
No thanks.  I value my privacy and this just seems too intrusive. 
paoli2
paoli2   |     |   Comment #5
Bah! Humbug!  Wait until we "old-timers" go to a "better" place and then you can bring in these new other worldly ways to exist by.  Maybe that is what they are using on Mars now but I missed the rocket for Mars so I want my old fashion paper statement etc. etc. 
Anonymous
Anonymous   |     |   Comment #6
Day-traders on steroids. This is the inevitably insane collision of technology and sociology. People operate at speeds a bit shorter than the nanoseconds driving the machines innards. It's why people walk into traffic while reading texts. Hello world! We created phone technology for a reason! Use your eyeballs as intended by NATURE.