Technology and It's Impact on Banking

Banking technology is fast evolving to the stage where we might never have to visit a local branch again and instead do all our banking at home. OK, maybe this scenario is a little too futuristic, but as technology in banks grows, so do our expectations.

Eliminating branch banking

Branch banking is most annoying for many consumers as waiting lines get bigger and customer service decreases due to money curbing at the bottom level. Unfortunately we still need to visit a branch if we want to cash cheques or draw large amounts of cash.

Perhaps the soon-to-be launched iPhone app called USAA Deposit@Mobile will get your heart racing faster. The application has been developed by The United Services Automobile Association. It is a financial services company for members of the U.S. military and veterans.

This new app – provided you do have an iPhone – will allow you to login to your account and send a virtual picture of the front and backside of your cheque before hitting the send button. Once the bank receives your message they’ll send you a reply confirmation. Check out how it works on this video demo. Now I’m REALLY jealous of not having an iPhone to start plus I am seriously considering becoming a professional Rambo to take advantage of this service.

The old-style option of course would be to deposit your cheque as usual in an ATM. At least with Bank of America you can get printed receipts that show your scanned cheque to give you peace of mind.

But thanks to mobile phones cheques are on their way out. Soon we will be able to use our mobile as a debit card as banking technology improves even more. We will also be able to receive and send money on our mobile phones – how cool is that!

Several companies are busy to make this a reality and Nokia has already registered the trademark name Nokia Money. Mobile phone banking will be the trend of the future no doubt. The company has invested some $70 million into a company called Obopay to allow customer banking securely.

Wallet-free future a possibility thanks to banking technology!

Thanks to mobile banking banks across the US are closing their branches in order to save on cost while allowing customers to take advantage of modern banking facilities online.

Our future might as well see us close million dollar banking deals while we sit in a local coffee shop idly chatting away with friends. While this picture does have an attraction factor I don’t think our grandparents or parents are too enthused of having to bank with a mobile phone – what exactly is a mobile phone they will likely ask.

The bright side of bank branches.

Innovative planning is used by Oregon-based Umpqua Bank. The bank has 151 branches that double as offices for digital nomads. Offering Internet cafes, conference rooms, a giant multi-screen interactive video display called the Discover Wall and PC stations all allow customers to hold video conferences with financial bank advisers. Similar in some ways to the ING Direct Cafe concept where one can go to do online banking with free Internet, sip a Latte or just browse the net, ING currently offers their digital services in eight US locations.

Umpqua Bank’s view of banking technology can be seen on this video.

What’s holding mobile banking technology in its baby steps?

Right now the main thing that holds us back from taking advantage of these banking technologies are concerns about security. According to financial firm KPMG, two-thirds of Americans aren’t “comfortable” using cell phones for financial transactions.

It is clear to most that the age – or generation factor is also relevant by how we embrace these new technology for banking. While the 18 to 25-year old are already doing mobile phone banking (21 per cent,) older generations are still worried about their financial data.

Source: PC World

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