Mobile technology has affected every area of our lives, but perhaps the most dramatic changes have been in how we handle money. Mobile tech has revolutionised finance at every level, from executives in a boardroom to people tapping in on the tube with their phone. Let’s have a look at some of the most exciting new developments in mobile finance across the world.
All the major high street banks now offer apps with different degrees of functionality, from simply checking your balance to transferring money and setting up standing orders.
This has allowed customers in the UK to save up to £7 billion every year, by alerting customers when they’ve overspent and letting them move money around quickly to avoid overdraft fees.
The majority of digital first banking customers are from younger demographics, with millennials more trusting of smartphone security, and quicker to embrace them as a tool to manage all areas of their life.
It’s not just the high street banks taking advantage of this: the last few years have seen a new trend for new ‘digital first’ banks, with customers managing their apps primarily through apps. N26 is a new bank based in Germany with 300,000 customers across 17 EU countries. As well operating mostly through mobile, it offers a marketplace for other financial firms to offer services like international money transfer.
By bringing financial services directly to customers’ mobile phones, these new banks are stirring up the industry, able to be more flexible, and more available and perhaps most importantly cheaper than bricks and mortar institutions who have the additional costs of premises and staffing.
Instant payments focus on low value retail payment systems,they differ from realtime gross settlement systems and distributed ledger payment systems.
Connected to mobile banking, phones and tablets are also hosts to instant, free payment apps, allowing people to transfer small amounts to each other without charge or inconvenience.
Security and Blockchains
All of this innovation needs to be backed by security to match. If the mobile banking advances that can turn your phone into a contactless credit card, or let it send money across the world with just a phone number as a reference aren’t matched by equally revolutionary security measures, they open up innumerable loopholes for fraudsters and hackers to take customer’s money. This would not just drive customers away from this new form of banking, but cost the banks in reparations and fines, undermining the cheap, flexible service digital banking provides.