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Beginning of Mobile Banking
The first banks to offer mobile banking were European banks, with most major U.S. banks following along later on around 2007 when smartphones were on the rise. Some competitive advantages mobile banking allowed banks to have was 24/7 availability, provide quicker service and provide better security. Leaf Group Ltd. 2018. Sapling. History of Mobile Banking. Retrieved from: https://www.sapling.com/6805576/history-mobile-banking -
iPhone and Droid operating systems released
Smart phones changed mobile banking drastically. Bank apps were previously difficult to use and not appealing to customers. Smart phones offered easier to use apps and improved graphics. Banks began offering more of their services though apps like loan applications making them more competitive. Leaf Group Ltd. 2018. Sapling. History of Mobile Banking. Retrieved from: https://www.sapling.com/6805576/history-mobile-banking -
Bitcoin
Bitcoin is a cryptocurrency that was created that uses no banks or middle men in transactions. The transactions are also anonymous which means the customer information is not easily traceable. Bitcoin could cause a threat to traditional banking as it grows because customers can now obtain financing and offer money transfers quicker without banks and without fees. If banks create their own cryptocurrency, they can stay competitive. -
Blockchain
Blockchain technology prevents a digital ledger of all transactions from being altered because multiple parties have access to it at once. It is used with cryptocurrency but banks are looking into it for areas such as payment systems or to create their own digital currencies to keep their current control over monetary policy. The financial times ltd. 2018. Financial Times. Five ways banks are using blockchain. Retrieved from: https://www.ft.com/content/615b3bd8-97a9-11e7-a652-cde3f882dd7b -
Mobile pay
Google wallet, Apple Pay and Samsung pay are some examples of mobile pay. They are low impact on the banking industry because currently they are not being used by most smartphone users. Users of mobile pay are still utilizing their banks but are not using their credit cards or cash. Banks can be more competitive by offering mobile pay because it offers more convenience to customers that want to use it. -
Other References
Cable News Network. 2018. CNN Money. What is bitcoin? Retrieved from: https://money.cnn.com/infographic/technology/what-is-bitcoin/index.html
Koombea, Inc. 2018. Koombea. Is Traditional Banking Under Threat from Cryptocurrency? Retrieved from: https://www.koombea.com/blog/cryptocurrency/
Tearsheet. 2017. Tearsheet. Payments. Retrieved from: https://www.tearsheet.co/payments/when-it-comes-to-mobile-payments-banks-need-to-learn-from-retailers