Will traditional banks accept invisible banking or disappear?

by | Feb 10, 2021 | Innovations in Fintech | 0 comments

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Let’s discuss the traditional banks and the newly emerging technology companies.

With these technologies all banking transactions becoming getting faster. Fund transfer is happening in real-time where it was taking a few hours. The account opening process has also become so fast as the customer gets his account number cheque book and the debit card immediately. Customers can analyze all expenses and spending on a mobile app. Chequebook, download statements, generate interest certificates, fixed deposits, investments, insurance these all transactions can be done with a single click.
Despite these advancements, there are so many third-party service providers coming with innovative solutions. Paytm, Google pay, Amazon, Phonepay providing quick fund transfer facility through UPI and QR codes. There are different aggregators enabled comparison facilities for end-users where customer can compare different service provider and their benefits. More advanced if we see the example of fastag where the road toll gets deducted directly from bank account/ wallet, the same can be used for parking tickets.

With the emergence of artificial intelligence (AI), Big data analytics, Blockchain technology, Robotics and voice-operated devices like Alexa and Siri banking will experience a bigger shift in the coming future. As per expert banking will be completely invisible till 2030 rather apps will also disappear. In short, banking will not depend upon any device and will be available virtually for consumers at any time 24* 7*365.

Traditional banks need to embrace all these technologies if they want to sustain themselves in the competition. Technology firms making a higher investment in research and development i.e 10 to 20% of revenue where banks investing 1-2%. This will slow down the speed of growth for banks. Banks either need to invest more or either have to collaborate with fast-growing innovative technology companies.

There might be some obstacles like regulatory frameworks, compliances, cybersecurity, etc. But those will be winners who will use their data effectively, lowers the cost of operations, and allow innovations and accept them. So be ready for invisible banking.

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