Advances in the fields of finance and technology have drastically changed the landscape of the banking industry over the course of the last 50 years. But is our modern approach to finance as much of an improvement as many believe it to be? Most people would agree that stashing cash under your mattress is now […]
Advances in the fields of finance and technology have drastically changed the landscape of the banking industry over the course of the last 50 years. But is our modern approach to finance as much of an improvement as many believe it to be?
Most people would agree that stashing cash under your mattress is now a definite old school style of banking. Keeping a close eye on your savings however, is not an old-fashioned idea. In fact, in light of the current economic situation, it’s a very wise one.
The recent advances in technology have made a huge impact on the world of banking.
Nowadays our finances are literally at our fingertips with the introduction of mobile banking – all you need is a smartphone. Whether it’s a matter of moving funds from one account to another, or wanting to transfer an amount to someone, it can all be done within a matter of minutes from the convenience of wherever you may be. Bringing services closer to the customer and guaranteeing its use at any time have been the most important goals in the banking world within the last twenty years.
In order to understand just how significant the change has been in how we use and interact with banks, one needs to look at the various methods which are most common amongst consumers today.
We’ve already mentioned the use of smartphones as a way of keeping on track of finances, but just how are people doing this? Well, for the majority, it’s as simple as downloading the corresponding “app” associated with your bank. Almost all of the high-street regulars have implemented this technology, from NatWest which, according to This is Money, has the quickest app for transferring money and making payments, to Santader ’s iOS-leading platform (NatWest led the way on Android).
For security reasons you will have to set up a PIN number which you will then need to input every time you wish to use the “app”. Once you’re in, it’s up to you what you want to do – whether you wish to have a quick look at your available funds or want to move money from your savings to your current account, you can do it all. A number of banks also allow customers to pay your contacts from mobile numbers in your phonebook – a hugely innovative leap forward.
What’s more is you can now deposit cheques using your smartphone. And no, you don’t need an extra device which plugs into your mobile – users sign the back of the cheque, take a picture of both sides, and send the image to the bank using the “app”. This of course saves customers the time and hassle of having to visit their bank and possibly wait in a queue to deal with someone directly.
It is not only mobile phones which have developed and brought the banking revolution to life – ATMs have had a makeover themselves. In the near future, one will be able to withdraw cash from an ATM without needing their bank card to do so. Instead, you will use your smartphone to scan a QR code which appears on the machine’s screen. You will then be asked to select the amount on your phone you wish to withdraw, which will then result in receiving a single-use authentication code to enter into the ATM and collect the cash.
The prominence of digital banking has brought with it the chance to manage finances at any time of the day, something that previous generations could not have envisioned. While this may mean that the need for face-to-face transactions are kept to a minimum, the scope that it offers in terms of convenience and ease for customers far outweighs any possible negatives.
This guest post was written by Ed Hallinan, who has been researching banking trends on behalf of NatWest. Ed works as a content strategist for ZenithOptimedia.
