Did you know that smartwatches are more addictive than smartphones?
A single, compact, electronic device is much more available and convenient than a laptop or a smartphone even.
Wearables are present in many areas of our lives and they will certainly change the way we bank too.
Will smartwatches replace smartphones?
The tech world is developing extremely fast. Surrounded by newer and newer digital conveniences in our everyday life, we love and desire everything that has the word “smart” in its name: smart TVs, smartphones, smartwatches, smart houses. Without a doubt, after mobile phones, wearable technology is the next great innovation and can revolutionize the future of the digital world. It will potentially change lives, businesses, and the global economy.
What exactly are wearables?
Simply put, the term “wearables” refers to digital devices that are designed to be worn on the user’s body. Being a part of the growing Internet of Things (IoT) ecosystem, wearables can track, capture and analyze data (e.g. heart rate or movement), connect with the Internet, and easily communicate with one’s computer or smartphone. Popular devices such as Apple Watch changed the way we send, get, and share data. Wearable technology affects our daily lives and makes social interactions more personal.
Wearables market forecasts
We cannot ignore the data. Devices, such as health and fitness trackers or smartwatches have become extremely popular tools over the past few years. Demand for wearables will continue to grow.
According to Business Insider, there will be more than 64 billion IoT devices worldwide by 2025. The global wearable technology market size is projected to grow from USD 116.2 billion in 2021 to USD 265.4 billion by 2026. It is expected to grow at a CAGR of 18.0% from 2021 to 2026.
What will financial sector say?
As the Internet of Things is the new normal, and wristwatches have become extremely popular, wearables are a great opportunity in banking. They are likely to change the financial industry, as well as customers’ experience too.
Firstly, given the growing popularity of these devices, it is only a matter of time before multiple industries start to use them. The unfettered convenience of not needing to carry additional devices, and simply wearing the device on the person’s body (skin to skin) throughout the day make consumers demand more than just using watches for workouts or healthcare purposes.
Increasingly, people want their wearables to include more of the tools they need, for example, to manage their financial affairs. Customers expect mobile solutions to be available at every moment of their lives, especially when it comes to something personal like money.
“The bank in a watch”, which comes in all styles, shapes, and sizes, seems a handy and trendy solution. A bank account balance in a wristwatch? Why not!
The progressive development of digital solutions and changing customer expectations require more and more new solutions in the business. Just as banks began implementing online account access a few decades ago, then enabled their services via smartphones, the next step is wearable banking.
Sooner or later, banks will have to introduce wearable devices into their offers. It is not only the question of facilitating banking for the clients but the matter of creating a new, great, personal level of customer experience and leaving the competition far behind. That, of course, requires wise decisions, preceded by a thorough analysis of trends and the market. The fact is that early adopters will also likely be the ones that benefit the most than those who come to the party a bit later.
With solutions, such as FINANTEQ Smartwatch Starter Kit, banks can jump on the bandwagon of Smartwatch Banking easily and fast. Learn more: visit our website or contact us just now to talk.
Follow our blog and always be up-to-date with the latest trends in mobile banking.