Due to advancements in technology, the ever-growing mobile trend, and society’s desire for convenience, the face of money management is evolving. In the past, everything was done manually and was centered on brick-and-mortar banking institutions. These banks provided all the necessary banking services for money management, such as deposits, withdrawals, and loan application and approval. Even managing personal home finances was done manually. Most families kept track of their funds using paper and pen, writing down income and expenses by hand.
Luckily, money management in today’s world is easier and much more efficient — as well as more secure. Rather than depending on handwritten and outdated methods, money management now relies on relevant technologies such as mobile devices, apps, and the Internet. Because of this transition, banks are no longer the primary hub for financial activities. Most banks have online sites that allow you to personally handle a majority of your banking needs on your own at any time or on any day of the week. This technology takeover has also made possible other money management options, such as sending money online. What was once a complicated process is now as easy as clicking a button. In the event that you need to, say, send money to Brazil or anywhere else around the globe, you could do so in no time from your smartphone, tablet, or computer. A trip to the bank is no longer required.
If you want to learn more about the changing face of money management, check out the following infographic for more information.
Photo Credit: phalli
I agree, but traditional banks will be around for a long time. I work in the IT department of a credit union and, even though we have internet banking, we still have tons of people who use phone banking – that automated system where you call up and talk to a robot and press buttons to get your balance and such.. It’s incredibly archaic and, from an IT standpoint, it’s a real pain in the ass. We’d love to have it go away, but there are lots of members who still use it, so we can’t get rid of it. These are mostly older people who aren’t familiar with technology or are not comfortable with it. So, yes, traditional walk in branches may be going away, but it will take a long time. Even longer when you consider some things have to be done in person, such as signing and notarizing documents.
And sometimes it’s the credit union that insists on my physical presence. The credit union is about 20 miles away, near where we used to live and my husband worked. I do all my banking online. I was making a withdrawal from my IRA, had to go in to the branch, wait to see someone, fill out paper work, sign etc. All to get the money transferred into my checking account. I think this is actually a federal requirement, but I do wonder what we will do if we move. Snail mail I guess.
I suggest your institution make a long term plan to phase out the old tech and incentivize customers to use the new stuff. And by “incentivize” I mean pay them. Either charge them eventually to use the service you no longer want to provide or pay them money to use the new service.
For instance one common error banks make is charging customers to use other institutions’ ATMs. Think about how much cheaper it is for XYZ Bank if I use another bank’s ATM than if I walk into their own branch and use a teller. USAA rebates — in cash — ATM charges each month up to a certain level. I travel a good deal; knowing I can use ANY ATM I see is a wonderful convenience.
I’m fortunate in being a USAA member. They always sell us on the benefits TO US of their new offerings, because customer service is number one on their agenda. For all they know a member may be transferring funds or checking a balance from a foxhole on the other side of the world. They were among the first institution to offer mobile deposit. Their app makes transferring funds or sending a payment to creditors so easy that we WANT to use it.