The future of banking is a topic close to my heart.
I only realized this earlier this year while chairing a conference on traditional forms of banking versus modern smartphone banking. I constantly find myself trying to engage with older members of my family on the move toward smartphone banking, only to be met with reluctance and apprehension.
For people of my generation, smartphone banking comes naturally. Visiting the bank, standing in long lines, meeting your relationship manager is not something I have ever done in my 33 years of existence. And why should I when I can transfer money with the touch of my finger and make investments through an app.
So, when my parents, who live in India, tell me that they have to go to the bank — a place that has become their second home over the years — to make an investment, it baffles me.
For me, the debate is a conflict between the old and the new. Why is it that people resort to new-age banking? Personally, it is to save time, for a better user experience and integration with other aspects of your life.
Let's not forget that we live in a world where since the 2008 global financial crisis, banks are suffering from a trust deficit. A number of consumers lost a lot of money during the crisis and want to steer clear of more established banks, while also moving toward more favorable rates from smaller operators.
However, technology while being your best friend can also be your worst enemy in the form of cyberattacks — a few of them we have already witnessed. There's also the issue of data privacy.