Thursday, April 6, 2017

Mobile banking is saving us 'billions' in charges



Mobile-only banks are becoming more and more popular across Europe, and have apparently saved billions in bank charges, according to several tech start-ups. Azimo, an international money transfer service, claims that Europeans could be saving up to £7bn a year in financial fees, as mobile banking applications help to switch money more quickly, and aid in avoiding overdraft charges. In fact, two-fifths of UK consumers claim to have avoided up to £100 in debt and charges by using tech to manage their money. HSBC, one of the largest global banks, says that more than 90% of its interactions with customers are now through digital channels. Across the UK, more than 1,000 local bank branches have closed down in the past two years, and there are 400 more expected to shut their doors in 2017. This change in banking behaviour is largely due to the convenience offered by smartphone tech, and the trust which younger generations have in the security of smartphones and their biometric authentication methods. As such, mobile-only banks like Startling, Tandem and N26 are able to bring together products from a range of providers, enabling innovation in the finance and banking space. For example, German start-up N26 offers an in-app marketplace that gives customers access to other financial technology providers like TransferWise for international money transfers. There is also a move towards collaboration with major financial institutions. Through partnerships with established banks, businesses across the Eurozone can take recurring payments without high fees and piles of paperwork.

What is your take on this? Do you think that it is a move in the right direction for the financial services sector? Could mobile-banks help to increase trust in the banking system, particularly after the 2008 financial crisis? 

http://www.bbc.com/news/business-39290041

3 comments:

  1. I am typical old school person and I know that online banking provides so much convenience as well as saving bank charges, yet I still don't rely on mobile and online banking. It's nothing matter with the technology itself nor the banking system, it is that what if I lose my phone? The password is easy to be deciphered. And sometimes for convenience, I know people even set "no password required" to make small amount of money transactions. I'd say that mobile banking really brings us convenience, but we still need to measure its pros and cons before deciding whether to have it or not.

    ReplyDelete
  2. I agree that there are risks to mobile banking, however, it does offer a lot of benefits. Beyond preventing fees and the unnecessary overhead, text alerts and easy access to your purchase history can help to prevent theft and other shady behavior.

    ReplyDelete
  3. I agree with Zoe. I think the idea that it can help prevent theft and other shady behavior makes it very enticing.

    ReplyDelete