Choose a trend in the consumer services industry that is not covered in this lesson and describe it for each of the following categories: Education Social Economic Regulatory

FROM PLATO

(Answers may vary)

Mobile payments are becoming more and more convenient for customers. Customers can use their mobile phones using several available apps to pay for products and services without having to carry a credit or debit card.

Trend in education: There are several apps and mobile learning platforms available on smartphones and digital tablets to facilitate learning on the go. They help in bringing together different individuals or groups to collaborate and share their ideas. Many companies are working on expanding the virtual classroom experience with features such as live participation, universal access, and so on. These platforms help in lifelong learning.  

Social trends: Today, certain consumer service organizations are forming non-traditional partnerships between the non-profit sector and private sector to maximize resource utilization and offer fresh ideas. This partnership results in a new consumer service ecosystem in which organizations forge interactive and interdependent relationships that are directed towards a common goal.  

The social trend toward minimalism supports mobile payment technology. Consumers dislike having to carry too many things that could get lost, particularly something that could hurt their finances if lost. However, most consumers keep careful track of their mobile phone because they use it so often, so mobile payment technology is convenient for them.

Economic trend: During the economic crisis of 2008, very few banks were willing to lend money to consumers. However, now banks have become more open to lending money to consumers. Large banks have strict lending regulations, whereas credit unions and community banks have fewer restrictions and offer loans at lower interest rates.

The gradual strengthening of the economy has opened the way for mobile phone apps, which are highly technical but quite inexpensive, often free. Mobile phone apps have made a huge impact in the way people live. The slow recovery from the economic recession has actually helped this industry, who made their products easy to obtain without a financial commitment.

Regulatory trend: Banks have to meet formal expectations set by the Federal Reserve Board (FRB) and the Office of the Comptroller of the Currency (OCC). To meet these expectations, they have to raise their standards for governance and enterprise risk management so that they can meet increased and more formal expectations. The overall assessment of risk-management frameworks will set the standard for the bank’s current structure and processes against regulatory standards. It will also help in the development of a well-defined remediation plan. Mobile phone payment apps must meet the same regulatory conditions as other financial products. Because Internet payments paved the way for making transactions secure, mobile phone payment apps were able to build on this technology to guarantee safety and privacy when making mobile payments.