Breaking the Bank: The Evolving World of Money

Mobile banking on mobile smartphoneWe’ve all heard the phrase, “spend money like it’s going out of style.” While money really won’t go out of style, some of the ways we manage our money just might. Because the technology behind banking is changing so quickly, things could look very different in just a few years. Here are some ways we bank today that may become less common, or even disappear, soon.

The neighborhood bank branch. As more people bank online or via smartphone, banks are evaluating the future of the neighborhood branch. With so many options available electronically, customers just don’t have a need to visit branches as often. While neighborhood branches likely won’t completely disappear, they will be smaller and have smaller staffs. The branch of the future may look more like an airport check-in than a traditional bank branch. Fewer tellers could manage a handful of self-serve computer screens inside places such as supermarkets, cafes, and coffee shops.

Pin numbers and card readers. PIN numbers and card readers will probably be a thing of the past soon. Fingerprints and eye scanners will replace signatures. Perhaps shoppers will be able to walk into a store, pick up what they’re after, pay via their wearable device, and walk out.

Cash and checks. There will most likely be cash for quite some time. It’s quick, easy, accepted almost anywhere, and can keep your paper trail to a minimum. Most experts feel cash will take longer to die out. In the meantime, smartphones and contactless payment methods will grow in popularity as a way to purchase our groceries, clothes, train and bus tickets, and more. The same can’t be said of checks. Check use has rapidly decreased over the last few years, and we are already using digital technology to transmit our checks.

Traditional loans. Want to borrow money but your bank won’t provide the loan? There are already many different models of peer-to-peer lending groups and websites that will lend money directly to individuals and businesses without going through a traditional financial institution. Could this be the wave of the future? Time will tell.

What other ways do you feel technology will affect how you manage your banking and finances in the future?

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