As we move into 2022 and beyond, consumers can expect to see some big changes in the areas of personal finance, according to industry thought leaders like Dan Schatt.

The technologies that will be having the greatest impact on consumer finances by 2022 include artificial intelligence (machine learning), blockchain, Robo-advisors, cryptocurrencies, and peer-to-peer lending platforms. Here’s a look at how those technologies will affect your bottom line.

AI-Powered Advisors

We’re already seeing how AI-powered financial advisors like Wealthfront are changing how people invest their money. Wealthfront uses software algorithms to manage clients’ investments rather than human fund managers. They’re able to do this at a much lower cost, which translates into better returns for investors. These types of automated investment services are just the beginning — in five years, many of your financial decisions will be made for you with the help of AI-powered devices that know your needs better than you do.

Blockchain Technology

Cryptocurrencies like Bitcoin have captured headlines lately, but blockchain technology is what makes them possible. Blockchain technology is changing the way people make transactions. In the future, we will see banks and large non-bank entities cut out middlemen in record keeping, clearing & settlement. This will drive costs down while accelerating transactions, translating into everything from faster stock market trading to the ability to get a home loan in half the time for half the money.

Robo-Advisors

Robo-advisors like Betterment are already helping people grow their savings by using “algorithmic advice platforms that drive better investment outcomes.” These companies use software algorithms to manage your investments instead of human fund managers. This type of automated investment service is just the beginning — in five years, many of our financial decisions will be made for us with the help of AI-powered devices that know our needs better than we do.

Peer-to-Peer Lending Services

Peer-to-peer lending services like Prosper and Lending Tree are changing how people borrow money by using the internet to match borrowers and lenders. In five years, peer-to-peer lending won’t just be a more convenient way to get a loan — it will also be cheaper.

Cryptocurrencies

Cryptocurrencies like Bitcoin have captured headlines lately, but blockchain technology is what makes them possible. Blockchain technology is changing the way people make transactions. According to experts, we will see banks and large non-bank entities cut out middlemen in record keeping, clearing & settlement in five years. This will drive costs down while accelerating transactions, translating into everything from faster stock market trading to the ability to get a home loan in half the time for half the money.

Fintech Startups

Fintech startups like Betterment are already helping people grow their savings. These companies use software algorithms to manage your investments instead of human fund managers. This type of automated service is just the beginning — in five years, many of our financial decisions will be made for us with the help of AI-powered devices that know our needs better than we do. As a result, people can expect more personalization, no fees, and better returns from their investments.

Virtual Reality

In the next five years, virtual reality will have a major impact on your finances. The ability to “see” what you’re spending has been a missing link in online shopping that’s holding consumers back from making more purchases online. In five years, people will use VR headsets to see exactly how much things cost in virtual stores before they buy them. Seeing the price of an item in a 3D model instead of looking at pictures or reading text has decreased impulse buying significantly. In addition, VR is changing the future of financial education by giving young people access to experiential learning opportunities they never had before.