According to Tearsheet, the trend of banks lending their financial infrastructure to third parties through application programming interfacing, also known as API, is growing rapidly. The implementation of APIs in the banking system creates digital bridges between a bank’s customer base and different media applications or programs. This opens network traffic and enables the flow of information between platforms. One such example is the user interface between PayPal and Siri. Apple smartphone users can simply say, “Siri, send Margaret £42.00,” and Siri will initiate and complete a Paypal transaction to send those funds. Facebook Messenger payments are now a thing as well, thanks to API technology. Facebook is working with the big hitters in the banking industry, such as PayPal, Visa, Mastercard, American Express and more.
Cryptocurrency is, to explain it simply, internet money. It uses blockchain technology to its advantage in order to achieve decentralization, thus protecting data blocks from corruption while achieving transparency. The cryptocurrency system has begun to take off, but while there are many competing cryptocurrencies available to trade, it may take some time for such a radical idea to achieve its full potential and go completely mainstream. According to MX, the introduction of tech giant Facebook’s Libra cryptocurrency was met with scepticism. But if you look at Bitcoin, you can see how successful “internet money” can be. One Bitcoin is worth almost 8,800 pounds today. At the time that one Bitcoin was worth less than a penny, a man traded his 10,000 Bitcoins in because he had a craving for pizza. That pizza cost him 88 million pounds at today’s exchange rate. Scepticism can sometimes be costly.
Updated Banking Means More Cash Machines
According to Trupoint, today’s average bank customer places as much, if not more, importance on a bank’s website, their mobile app and the locale of cash points as they place on the location of brick-and-mortar branches. Customers want cash machines that are full-service rather than deposit-only. They also want mobile banking systems that meet the needs of their busy schedules. Additionally, brick-and-mortar branches are becoming more casual, thus creating an increasingly trustworthy bond between customers and bankers. Banking is in the midst of an evolution, and the customer stands to gain from this evolution. Bankers realize that customers have a lot of options open to them now, and they are shopping for the bank that is right for them, so the competition is heating up now more than ever.
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