Volume 3 Issue 4
The Evolution of Financial Management: From Checking/Savings to Digital Banking and Investing
By Lourdes Cortez
Over the years, advances in technology have directly impacted banking and the financial industry. As technology continues to advance, financial services will continue to evolve. With changes in the financial sector, individuals need to stay informed and make the necessary updates to their own personal financial management processes.
The early 1960’s started the revolution of banking with the introduction of the Automated Teller Machine, now known as an ATM. Soon thereafter in the 1990’s, electronic banking was made accessible and completely changed the role of in-person banking. Today with the use of iPhones and Androids, mobile banking has completely taken over the financial sector. With this major change, it is essential to understand how this effects you from your checking to your savings and even how you invest your money.
The key concept in this change towards digital banking is accessibility to the consumer. Consumers want to have quick and easy access to their money, as well as the ability to make transactions and financial decisions on the go. Mobile Adverstising Company, Verve Mobile, conducted a poll that resulted in 63% of US consumers choosing their smartphones as the platform of choice for banking. This number will continue to increase over the next few years.
The shift of banking from in-person tellers to ATMs to online deposits from smartphones will affect all facets of banking. Tech-savvy staff will help banks understand how technology will improve banking changing hiring patterns for banks and credit unions. Digital marketing will be crucial to ensure that consumers are aware of all the digital offerings for banking.
Basically, we have evolved to a point where banking is now accessible 24 hours a day, 365 days a year.
In reality, new online banking features are simplifying the lives of consumers. Opening a bank account without leaving the comfort of your home is possible and takes less than 10 minutes to complete. Electronic statements have made balancing your check book more efficient and has reduced the amount of paper waste. This has also opened the door to automatic bill payments directly from your account, reducing late fees as well as unnecessary stress. Mobile message alerts allow the consumer to get quick reminders of account balances, approaching bill payments as well as any fradulent charges. These are just a few of the conveniences of online banking and how technology has impacted the overall banking experience.
It is important to remember that banking technology changes are consumer-driven, and financial institutions want to meet the needs of the consumer. From online tools like mobile deposits to financial reports that can be exported, institutions will continue to stay on the verge of how and what consumers need in terms of accessibility and convenient banking. Technological capabilities are advancing on a daily basis, and banks will continue to leverage these capabilities to improve customer service.
A mere 30 years ago, an in-person visit to the bank to open a bank account, deposit or withdraw funds, or simply receive a bank statement would mean long lines and even hours at the bank. Today, this is no longer the case. As financial management and the banking industry continue to evolve, you as a consumer should stay in the loop of how to take advantage of new features and technologies.