Mozo’s 10 banking predictions for 2018
Unless you’re a psychic, you probably don’t know what 2018 has in store. But here at Mozo, we’re pretty in touch with our cosmic abilities – we’ve even predicted money horoscopes for 2018! However, despite our bubbling confidence, our crystal ball has seen better days, so as you read on, take these banking predictions with a grain of salt.
ATMs will vanish
One by one, these convenient money-givers will slowly start to vanish from street corners and shopping centres. Since most ATM fees were dropped, we also predict that banks will merge ATMs to sit under one network and brand, abolishing any ties to banks and financial institutions.
International transfer fees will disappear
ATMs aren’t the only banking tool that will perform a Houdini act – an increase in apps that will remove international transfer fees and allow Aussies to exchange and spend money freely could be on the horizon. The inspiration may have come from European app, Revolut, which is expected to shake up the Australian market once it starts offering its services to Aussies.
It’s make or break for credit cards
Credit cards will be put on trial in 2018 as records have shown that the number of credit cards holders has dropped. Mozo research also found that rewards schemes aren’t what they used to be either, with the average rewards credit card net gain dropping to a small $27.
Layby innovations like Afterpay will intensify the competition with card providers, potentially forcing them to offer layby payment plans with lower interest rates. If not, banks are going to have to get creative to make plastic the new black (again).
Dropping coin will get easier
In 2017, Aussies were obsessed with new ways to pay, which saw banks introduce payment technology that involved our phones, apps and fitness trackers. But as we look forward in 2018, expectations will be high when it comes to finding the next biggest thing in banking.
Banks will drop
Following the February Royal Commission, banks will start to sweat due to fewer rate hikes and increased competition. But it’s low risk borrowers who will come out on top as this will also mean lower rates and fees. Buying your morning coffee may also get a little cheaper, as Tap and Go transaction fees and other everyday charges will also be taken into consideration.
A rise in money management apps
Aussies will get more financially savvy in 2018, as money management apps will be as common as the smartphones they’re on. Consumers will have a better understanding of how they’re spending their money and will be able to budget more effectively.
Open banking will begin
If you’re like some of the many Aussies who bank with different institutions, you’ll soon be able to share your details from different banks. This will also make it easier to switch banks as information will be able to passed along in a smoother, more effortless manner.
Banks will customise prices based on credit ratings
Consumers who have worked hard to maintain a clean credit report will be rewarded with low rates, while those with a poor credit history may see higher rates.
Money will appear instantly
There have been whispers about instantaneous money transfers becoming a reality in 2018 and with the arrival of NPP on the horizon, Aussies may not have to wait that long. Before you know it, you’ll be able to put a deposit on a house with a simple NPP transfer!
A drop in bank branches
In our final prediction, everyday Aussies won’t be the only ones looking to cut expenses to save some cash. For instance, in 2017, Westpac shut down 20 branches – a trend that is expected to be followed by the rest of the Big Four banks. Mortgage brokers will also be used to round up new home loan customers while branches will receive a revamp with fewer tellers and and increase in advice or general service staff.
Need a bank account that can keep up with finance trends? Check out our bank account comparison tool, which compares 107 bank accounts from 56 banks.