Are Traditional Banks Losing Their Standing in the Finance World?

Are Traditional Banks Losing Their Standing in the Finance World? | Student FinTech

We’ve talked about traditional banking in the past and how their roles are changing as we head more into the “Star Trek” era. That being said, I don’t agree with the people who say that “banks are going to be a thing of the past.” Banks will always be needed as a way to keep, store, and disperse your money. Even though there are new and more modern ways to transfer money, most people still want a home bank where they can walk in, drive up, or call about their money.

It seems people have an emotional connection with their money. Perhaps they even have “separation anxiety.” You psychology majors out there can answer that question. Regardless of what it is, people don’t like the idea of dealing with money only on a “sky drive” or virtual system that they can’t see or interact with.

So traditional banks will probably last a few years longer, at least.

In the future, most banks that are still functioning as banks will likely be “mobile banks.” That’s right. I said there would always be a need for banks. I didn’t say they would be brick-and-mortar banks.

The distinct advantage of the mobile-only banking institutions over traditional real-world banks is that there are no fees for overdrafts. There are no checks to write. Most users say there is less of a hassle.

Added security is also a plus. If you are standing in line in a store purchasing something with your regular bank card, you may not see the transaction on your bank statement until weeks later. If you have mobile access, it may be sooner.

But the new “online only” banks without a physical address allow you to download an app that alerts you the second you make a purchase! This can help you stop a thief within seconds of the transaction if you did not authorize the purchase. There is even a “block account” option on most mobile-only banks so that you can stop a transaction immediately or block a payment is something looks suspicious.

In addition to the added security and easy deposit from phone options, you can also set goals with the app and plan for the future. It can be tied to other banks making the transfer a “one-button” process.

With this many perks for online banking, it seems that the traditional banks might be a thing of the past after all. Still, they will have a need for experts in the FinTech industry who can act fast to help secure a client’s account and update software and automated process as needed.

If you think this is something your young person would enjoy doing, if they like dealing with money and technology, there should be plenty of opportunities for careers. No one knows what the future holds in FinTech, but it does look bright from this juncture. So enroll in a tech school today and inquire about this exciting industry.