How technology has changed banking over the years

                        
E-banking, online banking, net banking, etc. have completely changed the way banking is done today.

The remnants of the 2008 financial crisis left a multigenerational scar on our collective psyche. The salve is innovation.

Accordingly, we have been watching the rise of financial technology, or fintech. Multiple challenger banks — N26 being the latest one to enter the U.S. market — have threatened the traditional business models of banks and credit unions.

Much like the car manufacturers of the 1980s, these banking institutions can no longer rest on their laurels and engage in business as usual. Innovation offered by the fintech sector implores banks and credit unions to provide customers with the speed and transparency customers have come to expect.

I was lucky to be raised by an entrepreneurial father and a certified public-accountant mother who spoke about finance and business at home routinely. But unfortunately, many people do not have that privilege.

The jargon and opacity of financial language is no longer an acceptable status quo for everyday banking customers who benefit from a myriad of new features and choices of how to manage thier money

Fintech has flipped banking fee structure on its head. Gone are the days of required account minimums for checking, savings, and investment accounts. Today, everyone can invest, even with their spare change.

Don’t like your financial institution? Don’t worry. At least a handful of start-ups are competing for your business. Just ask the people who are using Robo-advisors.

But traditional institutions are still struggling to meaningfully meet their customers' expectations. It’s no surprise that in the 11 years since the 2008 financial crisis, customer satisfaction with banking has further declined

For the past three years, I have worked as a co-founder of the financial literacy platform centsai. In the process, I have spoken to hundreds who work in the financial services industry, financial literacy and economics educators, and potential customers of personal finance management and services.

Change is slow and expensive, but banks and credit unions are finally acknowledging that today’s bank or investment account is pocket-size and simple to navigate.

Look at how many people use apps like PayPal, Venmo, or Apple Pay before they would even consider using the same service from their financial institutions — assuming it’s even offered.

The importance of financial literacy

Transparency is the first step, but meaningful financial literacy must be a mandatory second. An uneducated consumer is harmful to everyone. After all, a key factor of the 2007–2008 credit crisis was the billions of dollars of bad mortgages linked to property owners who were made to believe their home value would perpetually rise by 5 to 10 percent every year ad infinitum.

A step forward for banks and credit unions is to meaningfully embrace social media. A consequence of the digitization of finance is the loss of personal relationships.

We can’t turn back the clock on fintech, nor should we. But we can help small and medium-size regional brick-and-mortar banks, credit unions, and financial advisers reach their customers on the social platforms where they reside.

With Facebook’s foray into cryptocurrency (Libra) and the adaptation of PayPal in its messenger; Apple’s new interest in credit cards (pun intended) and the ability to transfer money with iMessage; and Amazone entering the personl and business loan space , the lines between banking, technology, and social media are already blurred.

The next disruptive financial technology will change the banking industry and level the playing field once again, allowing small and medium-sized banks and credit unions to personalize their services in a social setting

Mobile Banking

Mobile banking is a system that allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as mobile phone or personal digital assistant.

Banks are already investing in mobile technology and security, developing smartphone apps, adding new features such as remote deposit of checks, and educating consumers. Consequently mobile banking adoption among consumers has been much faster than the adoption of online banking more than a decade ago.

Internet banking is highly comfort in our routine life, in fact this made our life simple and convenient and over all we are able to enjoy quality service smartly. It resulted in efficiency and time saving methods. Also Internet is the cheapest delivery channel for banking products as it allows the entity to reduce their branch networks and downsize the number of service staff. For banks Internet opens up new horizons for them and moves them from local to global frontiers