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Introduction of Online Banking
Online banking became popular in the late 1980s and referred to the use of a terminal, keyboard and TV (or monitor) to access the banking system using a phone line. Competitive advantage: Self service technology used by customers to carry out real time banking activities. Ability to serve multiple customers faster. -
Debit and Credit Cards
Consumers and businesses have minimized checks in favor of card payments and electronic transfers via ACH systems. Recently, Visa introduced a Cashless Challenge that aims to persuade businesses to say no to cash in favor of credit cards or digital payments. Competitive advantage: Less risk of overdrafts made by customers. Reduced payment processing time and ability to offer customers overdraft protection fees; additional revenue stream for banks. -
Remote Deposits Capture
The introduction of Check 21 Act was introduced, making digital image of checks legally acceptable for payment purposes in the U.S. One bank can simply send an image of the check to the other bank for payment. Competitive advantage: Banks who offer an RDC service will have a distinct competitive advantage over those who do not when competing for corporate depository relationships. -
Peer to Peer Lending
SEC required that P2P companies regisger their offerings and securities, gaining approval to offer investors notes backed by payments received on the loans. -
Introduction of Mobile Banking
The use of smartphones and advanced apps gave banks the boost that made mobile banking a safe and viable choice. By 2012, more than 21 percent of all smartphone owners were using mobile banking. Competitive advantage: Forge a link between banks and customers. Mobile banking is regularly used across most age groups, thus expands a business' potential market demographics. -
Fintech - Digital Wallet
Google establishes Google Wallet, which allows consumers to use smartphones equipped with a near-field communication chip to make "tap payments". Competitive Advantage: Applications provide a more convenient transaction processing method for customers giving businesses with this technology by redefining the user experience of paying and incorporates a novelty aspect of purchase.