Reported by: banking|Updated: February 6, 2015
• Apple and Amazon know what you spent your money on and when you spent it !
• Facebook ,knows more about you than your friends and what you like !
• Google knows what you are looking for and when !
• Google, Paypal and Apple can make payments for you !
Who is the biggest threat to a Bank ?
Google!…as manylarge banks would acknowledge, if Google was to get into banking ! The Banks feel that they can manage their peers, as the other Banks too are in the same boat.With all the data that Google has it can be big trouble for the banks !Luckily, it has no plans (as of now) to venture into banking , but if they do at some time, the Banks would be under serious threat .
With the fast changing technology scenario , things are not the same for traditional banking , mainly credit card companies, banks and niche loan/money transfer companies .
An increasing number of alternatives are available to traditional means of finance with Social Networking, Cloud and Mobility.Emergence of non-traditional players is a threat to the traditional banks and some of these technologies/companies are showing good growth. The mobile payments growth is above 90% worldwide and continues to grow.
The traditional advantage of ‘knowing the customer ‘in Retail banking is being lost to these new generation companies. Banks knew ‘how and where the customers’ were spending but with new technologies and on line transactions, this advantage is eroding.
The new technology companies are taking business away from banks on multiple fronts ….
• The telecom service providers , can now become banks
• Payment platforms and mobile payments have caught up
• Crowd funding platforms are providing money at much more reasonable rates
• ‘Trade Finance’ is under threat with Cloud and e-invoicing companies like ‘Tradeshift’
• Peer to Peer ‘Money Transfer’ has gained traction and many new generation companies and offerings have sprung up like ‘Skrll and Paypal’
• Non-cash payments is growing with e-vouchers or pre-paid cards
Technology can help companies go across physical boundaries without spending too much on physical assets. It is also helping these companies to scale morequickly and economically than traditional banks, with many of these companies have robust and profitable business models . – See more at: http://www.bankingfrontiers.com/blog/inner.php?articles_id=319&cat_id=16#sthash.T6CDVjr6.dpuf