People today are moving away from banks and it has become the bank’s responsibility to reach out to the masses. The only way they can do it now is by leveraging technology. Mobile wallets, electronic transfers and online banking have been adopted by almost all major banks.
Banks as technology companies
Banks in the past used to see banking technology as a backroom operation, which has changed quite a lot in the past decade. Competition among banks has forced them to adopt new technological measures and upgrade their services. These technological changes are so dramatic that bankers now consider themselves to be technological workers with banking licenses, which is proof enough that banking technology has now moved on to the forefront.
Lending ways have changed
The shape and form of banks have remained the same for many years. Banks lend money to consumers, and this fact will remain as it is. But the way banks deliver capabilities is certainly changing and will continue to change and evolve in the years to come. For example, just a few years ago, people needed to a day off from work in order to complete their bank related tasks. But today, because of online banking and mobile apps, customers are able do all that work on their smart phones or laptops any time of the day, be it day or night. This ability of banks to serve customers in an environment where they are getting more digital is critical.
Future of payments
The market for payments is very big and it can be said that payment banks will have a complementary relationship with universal banks. There is not much need for competition between these banks. There are deposits in the market which can be brought to the formal banking system and that is where the payments banks are going to play a role. Some of the payments banks also have legacy issues which universal banks don’t have.
Banks are growing their use of technology now and we can be sure that it will make the lives of consumers easier. Mobile remittances, online banking etc. have already changed the way the masses use their money and given a boost to the world economy. It is safe to say that this association of banks with technology is benefiting everyone in some way.