Many people seriously think that the banking system is the root of almost all problems in the world and especially in smaller countries; these people will perhaps be glad to hear that financial experts predict that very soon, most likely in the coming 10 years, the current banking system will be overtaken and replaced by different Internet and mobile services.
According to experts, technological innovations like PayPal, Google Wallet, and payments via Facebook, Apple, Amazon and Vodafone are going to evolve in the coming years and fundamentally change the principles of cash flow in the world. Of course, most of these systems still do their transactions via bank accounts, but the experts believe that the role of banks will eventually become smaller and smaller, and one day they’ll just go out of the game. A survey conducted by the specialists of University of Augsburg (Germany) among 1000 heads of banks showed that 88 percent of respondents believe that soon the role of specialized web-financial service providers like Google, Amazon and Facebook will increase and soon become even more important than the role of banks.
And this seems to be very logical, yes. After all, now is the best time for a breakthrough of such services. For example, in 2011, only Apple users downloaded and bought 25 billion applications for their devices (mostly for the new iPhone 4S); most of these transactions were made via phones, so no banks were involved. Besides, the customer base of social networks and other Internet resources often includes more than half a billion users, which makes these Internet companies the world’s leading provider of retail banking services – after all, the number of potential customers in any social network is much larger than that of any major bank.
Of course, there are still many people who prefer the good-old banking system (with checkbooks, credit cards, cash, etc.), but most of us who has ever tried, for example, to shop using Pay-Pal, understand that it’s easier and faster than the old system.
Currently, there are about 5 billion smartphones used worldwide, and experts believe that in 2016 at least half of the world’s population will use them and permanently be online. With mobile phones becoming this popular, major carriers like Vodaphone, ATT, Orange and D-Telkom start offering new electronic purses, which will keep people away from having to use cash and credit cards.
By the way, the famous NFC (near-field communication) systems are also developing now, and many experts believe that soon we’ll be using that system for money transactions, too. If it really happens, it will be the last “fatality” blow of the mobile technologies at the old banking system. Will banks survive after that? It still remains to be seen…
Amelia writes articles for www.rightmobilephone.co.uk.