Emerging Themes in Society: Cashless, Payday Loans, Millennials

This report examines emerging themes in society, focusing on the rise of cashless transactions, the prevalence of payday loans, and the financial behaviors of millennials. It explores the societal shift towards a cashless economy, the implications of payday loans as a form of short-term credit, and the debt burdens faced by millennials. The report analyzes how these trends impact household debt, business strategies, and the overall economy, particularly in the UK. Recommendations are provided for organizations to adapt to these changes, including adopting cashless payment methods, assessing borrower creditworthiness, and establishing clear terms for loan repayment. The report concludes that while the move towards a cashless society offers benefits, it also presents challenges, especially for those who rely on short-term credit. It suggests strategies for financial institutions to mitigate risks and ensure responsible lending practices in the face of evolving societal and economic dynamics.

Emerging Themes

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
RECOMMENDATIONS.................................................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Emerging themes are the concepts or explanatory ideas that are determined from data in
final stages of evaluation and given a code or label that describes them. In society, various
changes are emerge like cashless society, millennial ages and pay day loan. Various
technological changes takes place in society which enables people to do cashless transactions.
Household debt is a mortgage liability on all real estate and residences, and customer debt
involving debt outstanding on unsecured and secured loans from banks and financial institutions,
credit cards, home equity and personal lines of credit and unpaid bills (Abrahart and et. al.,
2012). The theme chosen for this report is emerging changes in society in which cashless
society, payday loan and millennial ages are the other themes. This essay covers critical
evaluation of important emerging themes within article and current impact of those on
companies within household sector. Apart from this, it also discusses about how those themes
affect sector in next five years and their implications on business strategy formulation.
MAIN BODY
The key emerging theme of this report is emerging changes in society which includes
Payday Loan, Cashless society and millennial ages. Emerging society refers to the society
transforming from dictatorship to free market oriented economy, with gradual integration in
global marketplace, accelerating economic freedom, improving living standards, social stability
and tolerance and expanding middle class. Payday loan is a small unsecured loan for short term
“irrespective of whether loans repayment is linked to payday of borrowers (Creed and Gureje,
2012). These are sometimes also known as cash advances which refers to the cash give against
prearranged credit line like credit card. Payday loan firms can set up clients to become dependent
on them as they charge high fees and wants quick payment of loan. This need makes it tough for
borrower to pay back the loan and meet their regular monthly expenses. Cashless society defines
as an economic state whereby the transactions related to finance are not conducted through
money in physical form like coins or banknotes, but rather by digital information transfer
between transacting parties. Today people gradually move towards cashless society. They starts
to use more advanced, wireless, electronic and digital payment mode like Mastercard PayPass,
VisapayWave, Applepay, Samsung Pay. Firms, public transportation and tolls are also indulged
in it and accept payments through cards just like Uber, Starbucks etc. Cashless transactions assist
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businesses in gaining visibility over transactions in real time and lessens down cost of handling
cash and administrative burden. It provides benefits to both customers and government. For
consumers, the advantage of paying with plastic money lie in its easy use and safety, despite the
constant trade-off between anti-fraud and ease of use and identity theft measures. For
government, cashless society makes it easy to track and collect tax whilst committing fraud
(Yount and Yeaman, 2012).
However, some disadvantages of cashless society is that there a various credit card
holders among which some pay their debts in full, every month. Still, 10% of them are fail to pay
their minimum 5% payment of their outstanding debts. All this will highly impact on household
debt industry. More emphasize of people towards classlessness has led to numerous complex
issues. Electronic fraud cases are increasing day by day. In combination with negative rates of
interest, ease of electronic payments are driving high debt burdens. Millennials refers to
Generation Y which are the generational demographic group preceding Generation Z and
following Generation X. In United Kingdom, it is seen that people aged between 22 to 37 are
more using credit cards in comparison to others. It is estimated that around 16% of United
Kingdom adult population were over-indebted in year 2017in student loans and most the debts
are belong to millennials. They may save money, but most part of their income is spent on repay
the debt. In UK, escalation of consumer debts led to credit crunch (Singer and Tucker, 2014). A
disproportionate effect the consumer debt crises is have on young people. In Britain, cashless
transactions has topped £200 billion unsecured household debts. Financial organisations can
undergo balance sheet distress from indirect as well as direct exposure to household sector. The
distribution and level of household debts influence the sensitivity of aggregate demand and
supply in broader economy to shocks. Economy of UK is increasingly decline use of cash as
digital technology transform commerce across industries. Decline in use of cash and growth of
electronic payment has ensued so much. Therefore, it is predicted that in United Kingdom, only
21% of transactions would be made by utilising cash by year 2026. Country is rapidly adapting
cashless trajectory. It will provide benefit to organisations of UK as it will reduce handling cost
of cash for banks, retailers and public transport industry. The breakdowns in housing finance
market fall financial system into crisis. But now, the levels again starts to rising with debt to
GDP ratios. After analysing the current trend in household debt industry, it can be expected that
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in next five years, the trend of getting unsecured loans in United Kingdom will be increase, but
the availability of unsecured credit will significantly decrease (Schneider and Cuervo, 2014).
RECOMMENDATIONS
As per the above mentioned discussion, it is recommended that for increasing cashless
transactions, organisations must adopt methods by which they can get payments through cards
instead of cash. This can enable them in lowering down cost of handling cash. Before providing
credit to individuals, bank can ask clients for some type of collateral security before issuing
credit to them. This will helps financial institutions in overcoming the situation of declining
revenues. Organisations can aware customers to do more cashless transactions as it is safe.
Capital level of borrower can be analysed by lender as it assist them in knowing the
creditworthiness of individual. Organisation that deals in providing household credit can make
policies in which they can includes some terms and conditions for the time when individual will
not able to repay its loan back. Before issuing credit limit to borrower, financial institutions must
be require to check the financial record or history of borrower. This can helps firms in ensuring
repayment of their money from borrowers.
CONCLUSION
As per the above mentioned report, it has been concluded that various changes takes
place in society as it becomes cashless day by day. Today, people are more emphasize on doing
cashless transactions instead of paying with cash. Payday refers to the small unsecured loans
which is provided for short term period. Today, millennial aged people are using more cashless
transactions. They use more credit cards for doing transactions instead of others. In UK, it is
anticipated that around 21% transactions will be done by using cash.
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REFERENCES
Books and Journals
Abrahart, R. J. and et. al., 2012. Two decades of anarchy? Emerging themes and outstanding
challenges for neural network river forecasting. Progress in Physical Geography. 36(4).
pp.480-513.
Creed, F. and Gureje, O., 2012. Emerging themes in the revision of the classification of
somatoform disorders. International review of psychiatry. 24(6). pp.556-567.
Schneider, J. L. and Cuervo, A. M., 2014. Autophagy and human disease: emerging themes.
Current opinion in genetics & development. 26. pp.16-23.
Singer, S. J. and Tucker, A. L., 2014. The evolving literature on safety WalkRounds: emerging
themes and practical messages.
Yount, N. Y. and Yeaman, M. R., 2012. Emerging themes and therapeutic prospects for anti-
infective peptides. Annual review of pharmacology and toxicology. 52. pp.337-360.
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