Money Makes the World Go Round: How technology & globalization will change the face of banking in the future
Technology has always had a way of dramatically changing an industry. The banking industry is no exception. According to experts, technology, globalization and demographics will be the catalyst that will drive changes in banking over the next 100 years.
Competition in Consumer Banking
Traditional consumer banking will come under intense pressure in the future as insurance companies, pension and hedge funds enter the market place offering such products as online savings vehicles, crowd funding and loan syndications.
Mobile Banking Technology
Experts believe that as mobile banking technology continues to advance, brick and mortar bank branches will become obsolete. Of the 97,000 bank branches that exist across the U.S today, only a small percentage will actually remain, and may function more like a social gather place where people go to learn about personal finance.
As technology drives economic interconnectedness among nations, banking regulations will ultimately become more global rather than national in scope.
Financial Threat Reduction and Future of Physical Currency
Large data-applications will dramatically enhance the ability of large banking institutions by reducing losses caused by identity theft and financial fraud. Additionally, suspicious transfers of large sums of money can be detected in real time with the advent of these powerful tools. Notwithstanding, cyber criminals will nevertheless find ways to game the system which will pave the way for deposit insurance like entities extending beyond traditional banks which will include theft coverage.
Physical currency, like checks and coins will likewise cease to exist in a technology based, global banking system. As people continue to use hand held mobile devices to conduct banking and other merchant transactions using secure biometrics, the need for physical currency will cease to exist. Paper currency however will continue to play a small role in global economic society as some merchants may stubbornly adopt a cash-only policy for their own personal reasons.
Increased Interest in Financial Services
In the future, Asset Management will play a significant role in the financial services industry. This will happen due to a shift in global demographics changing our aging populous from consumers to savers. Nowhere will this be more evident than in the growing middle class sector.
The middle class will seek out investment opportunities and will seek out professional advice from financial experts. They will value human relations with financial advisers despite technology. Capstone Business Funding, LLC (“Capstone”) also values human relationships. They too provide professional and expert advice to small and midsized businesses by offering various commercial financing and options. Capstone specializes in Single Invoice Factoring (“Spot Factoring”) for firms in need of immediate cash. Spot Factoring provides flexible, no contract invoice selling in exchange for working capital from Capstone Business Funding. Give us a call today at 347-821-3400 to find out how we can help you.