Imagine a future where every swipe, click, and purchase tells a story, not just of transaction but also of connection – this is what the future looks like according to the The Future Laboratory and Afterpay Solving the Consumer Equation 2024 report launched at the recent Afterpay Future of Commerce event at the stunning Peir 2/3 in Sydney.
By 2030, the report details, the many shifts of the 2020s will have transformed our interactions with technology, currency, retail, work, identity, and community. Tomorrow’s brands face the task of reimagining consumerism as the next decade gets set to utilise new technologies, embrace next-generation values, and build a more experiential and equitable landscape.
The boundaries of commerce are blurring. Consumers seek brands that facilitate experiences beyond the point of transaction and seek personalised, immersive and intimate moments. Digital spaces have become intrinsically shoppable ones, with commerce moving beyond bricks and mortar to enter content feeds and digital media.
Financial empowerment is a new priority, as economic shifts give way to disruptive, entrepreneurial mindsets looking to redefine when it means to be wealthy. There’s a growing mood that the financial systems built to support and enable individuals are no longer fit for purpose. Promisingly, financial innovators can forge more inclusive and egalitarian models to help people spend, save and live how they want to.
Artificial intelligence is also set to take centre stage to inform a world of hyper-personalised experiences. Here, innovators will harness every touchpoint as a learning opportunity, using technology to cater for customers’ distinctive needs at scale.
At the event, two of the brightest minds in the financial landscape, Dr Catherine Ball, associate professor, author, podcaster, entrepreneur and futurist and Mark Bouris AM executive chairman of Yellow Brick Road unpacked profound insights from the report and discussed the challenges and opportunities facing consumers today, particularly for younger audiences.
Hosted by Katrina Konstas, country manager and head of sales for Afterpay Australia, the panel discussion emphasised the need for innovation not just in the provision of finance but also in how products and services are tailored to appeal to Gen Z and Millennials and suggested the power technology has in bundling services and anticipating consumer needs.
“Young people still think the same thing. I’ve got to buy somewhere I grew up, where I went to school, where my mates are. That’s not necessarily the answer,” said Bouris, arguing that education is critical in shifting these outdated expectations and suggesting that young people should be encouraged to consider alternative ways to enter the property market, such as buying in less expensive areas or even co-owning properties with friends.
Ball introduced another layer of complexity by discussing the intersection of economic realities and moral choices. Ball highlighted the paradox faced by younger generations who aspire to make ethical purchases but are constrained by financial limitations.
“I have Gen Z friends on social media, and they pose awkward environmental questions to each other. One that came up recently was who do you judge worse, somebody who doesn’t use a reusable coffee cup or somebody who buys fast fashion? And so this debate ensued on how fast fashion is so evil and it’s so bad for the environment. But the voice that really cut through this was, let’s take a reality check on what somebody in their 20s needs to do to buy clothes to go to their office job and look like they need to look. Everybody can afford a reusable coffee cup, but not everyone can afford Vivienne Westwood”.
Hall emphasised the urgent need for curiosity about AI in a rapidly evolving technological landscape, particularly in how it impacts privacy and data ownership. She highlighted Australia’s lack of data rights compared to countries like Estonia, where citizens can control and retrieve their personal information and warned of the growing influence of AI in creating “digital doppelgangers,” which amalgamate data to make significant decisions about individuals, often without their knowledge. Hall called for more regulation and transparency in AI decision-making, stressing that these technologies are not truly “intelligent” but rather complex mathematical systems influenced by human biases.
In response to this, Bouris proposed a shift to open banking that represents a transformative shift in the financial services industry, characterised by enhanced transparency and customer-centric innovation. Open banking fosters a more competitive and dynamic market by enabling third-party providers to access financial data through secure, standardised APIs. This approach not only improves the personalisation of financial products and services but also empowers consumers with better financial management tools.
According to Bouris, open banking is poised to drive financial inclusion by providing more accurate insights into consumer behaviour, facilitating tailored credit offerings, and promoting fairer financial practices. “It will be interesting to see where open banking takes us,” Bouris said, acknowledging the nascent state of this technology. He pointed out that while the legislation is in place, broad adoption has been slow due to reluctance from banks. “The banks don’t really want to share openly with other banks or with anyone in this room,” he said.
Bouris expressed concern that open banking could inadvertently “rule people out” because spending habits, such as on betting apps or excessive Uber Eats, might influence a bank’s decision. However, he suggested a more optimistic vision where lenders use the data to “rule people in” by recognising income from multiple sources and proactively offering loans based on a holistic view of a customer’s financial situation. “It would be great if me, the lender, went to you, the borrower, and said, ‘Look, you’ve already borrowed $1000, or you want to do renovations, let’s see how we can make it work for you,'” Bouris proposed.
Ball extended this idea by emphasising the importance of partnerships between large corporations and startups. “We are trying to break down silos,” she stated, urging businesses to engage with innovative Australian startups that are already developing technologies to enhance customer experiences. Ball stressed the need for established businesses to “talk to the geeks” in the startup world, bridging the gap between traditional commerce and cutting-edge technology.
The panel concluded with a call to action for retailers to prepare for 2030 and beyond by fostering partnerships, leveraging open banking, and engaging with the startup ecosystem. As Bouris put it, the future retail lender will likely be one who uses open banking to “rule people in” rather than out, paving the way for a more inclusive financial system.
