What is the digital economy and what are its advantages?
The economy is, without a doubt, one of the aspects that has been most impacted by the era of digitization. This continues today, transforming how we buy, how we work and how we live, with technological advances that seek to facilitate finances and processes of daily life.
The evolution of technology has been and continues to be shocking to many as it has spread across almost all industries, sciences, etc. This modernization gave rise to what is now known as the digital economy, a term that, according to BBVA’s “Digital Economy Situation” report, is defined as “the widespread use of ICTs, either directly, with the development of new ICT sectors, or indirectly, promoting the development of new companies and making traditional ones more efficient”.
It can then be said that the basis of this type of economy is hyperconnectivity, which allows the user to connect with businesses, companies, machines, among others. Its scope has been such that, according to Nasdaq, it is estimated that by 2040, 95% of all purchases will be made using electronic commerce channels.
This and other predictions make the digital economy a striking trend to invest in, since positive investment returns are estimated for everything that makes up this great environment.
When investing, it is important to know the advantages of an industry or trend, in order to know the positive impact that it may or may not generate in our society.
Big Data refers to the accumulation of an enormous amount of data for study. This sounds simple but the large volume of data that is generated minute by minute is what has made Big Data more than just a set of statistical techniques and digital tools for its study.
Advantages of the digital economy
- Time saving
For the user, time is a determining factor when making purchases, managing their finances, traveling or even working. This is one of the reasons why this type of economy has evolved so quickly, the user who manages to save time through the use of technologies will increase their use of them, drawing the attention of people interested in investing.
- Reduce costs
The digital economy considerably reduces the costs for the merchant and the maintenance of his business. Also for daily life, financial transactions, etc.
- Increases flexibility
The flexibility that financial technology provides can be seen at all levels of exchange transactions. From the user and the numerous payment methods to the possibility of buying from anywhere in the world, thanks to the multiple shipping options that currently exist.
Provides more information and decision-making power
The power of decision for the user defines many things and the use of the digital economy is exactly that, more information for better decision making.
- Process reinvention
The digital economy removes many of the barriers that previously defined the way certain processes are carried out. A clear example is work, which took a 180º turn with technological advances that allow, for example, working from home, making teleworking one of the most widely used alternatives today due to the multiple benefits it combines.
The digital economy: investing in the future
Investing is one of the most important decisions you can make and the trend you choose should be one that aligns with your ideals and has a greater chance of generating a positive return on your finances.
To do this, BBVA New Gen is constantly on the lookout for the most popular trends in the finance market.
Investing in one of the many industries that make life in the digital economy is, without a doubt, a smart choice that will diversify your portfolio, and BBVA New Gen is the connection between you and the most profitable trends.
Digitalization and sustainability in private banking
On Wednesday, March 4, BBVA organised an event in Zürich about digitalization and sustainability.
The importance of security in digital media
Can we consider that the world is truly digitalized? What implications does it have for our behavior in terms of consumption? Connectivity or rather multi-connectivity is part of our reality in all environments. In an increasingly digitalized world, it is very important to reinforce our security when interacting with digital media.