“Less tech" doesn't mean that devices will disappear, however. What we will likely see is a rethinking of what devices we use — and how we use them. The tech will become less noticeable and more integrated into our lives, as it makes its way from our pockets to our wrists, our appliances and perhaps even our eyeglasses.
Sales of smartwatches are skyrocketing. Wearables in general create opportunities for closer relationships between a bank and its customers. How about a financial advisor on your wrist, or even in front of your eyes as augmented reality (AR) headsets begin to trickle into the market? Could we one day gaze at an expensive price tag and have a budgeting app in our glasses tell us whether or not we can afford it?
Companies have been busy working out how to make fintech less obtrusive in the last few years. In Amazon Go stores which are not yet available in Canada, artificially intelligent computers scan items in a shopper's cart automatically, enabling them to pay without friction when they leave. These stores, first introduced to the company's own employees in 2016 and then to the public in 2018, aim to cut down on waiting and clutter for busy customers on the move. If technology like this proves workable, we might see the concept catch on more broadly.
AI has also changed our financial lives in other ways. The last decade saw the advent of the robo-advisor, which uses software to advise people on their investment choices. The first Canadian robo-advisor, launched in 2012, set the scene for rapid growth in this sector. Today, these AI-powered services are making inroads into the market, but people are still learning to trust them. According to Accenture's Powering Hybrid Advice in Canada survey, 70% of Canadian investors still feel that human advisors provide the best and most customised recommendations PDF, 320 KB Opens in a new window..
Expect to see more traction for these still-evolving digital services in the future, and expect millennials to lead the charge. For example, 38% of millennials told Accenture that robo-advisors should be a basic offering. That's twice more than investors from the boomer generation.
Another promising AI-based technology for fintech is the voice assistant. These are gradually permeating everything from smart speakers to thermostats to wireless earbuds. Research company eMarketer saw the usage of smart speakers in Canada jump from 1.3 million — 3.7% of the population in 2017 to 5.8 million — 15.7% in 2019Opens in a new window..Expect to see financial services companies taking advantage of this trend and offering voice-based services to clients.