the revolution and upcoming demolition of traditional banks in light of mobility.
– In 1980 – credit cards took 14 days to approve, personal loans 7-14 days, home mortgages 30+ days.
– In 2008 – credit card were instantly approved, personal loans pre-approved/24 hours, home mortgages 24 hours.
The increase in speed between 1980 and 2008 was primarily the result of the internet evolution and e-commerce.
Now jump forward to 2013, and mobility is the cause of the next increase in tempo.
People with mobile devices want instant access to their personal account information.
They want their business relationships and shopping experiences to be wonderful, convenient, digitized and instant.
Do we directly associate the brand quality with thier mobile app quality.
We are quickly coming up on a time when banks need to completely rethink their purpose and retool.
Many of us receive our paychecks electronically. We receive and pay our bills electronically.
We use debit and credit cards for most transactions. This is the digitization of banking.
The less cash we use, the less need for ATMs, and the less need for bank buildings.
Our mobile banking apps become our bank, and banking is a service that is offered by our mobile apps.
Research shows we access our banking information many times more in a year via a mobile app than through our bank branch.
The unstoppable trend is already here.
Once banking becomes “unhinged” from a physical building, banking becomes a “thing” that can be offered by many different kinds of companies.
Suddenly banks find themselves competing with a new and massive number of different companies offering a variety of traditionally bank only services.
Traditional banks need to immediately understand the mobile app is the new bank, and services will include
mobile banking, mobile payments, e-wallets, financial services, advice, social interactions, guidance, gamification of our financial plans,
Big Data comparisons with others in our demographic etc.
Competition will come from companies far outside of traditional banking circles.
read: Bank 3.0 by Brett King (http://www.banking4tomorrow.com/)