Money makes the world go round. We hear it time and again and it is true in every sense of the word. We live in an increasingly capitalist world that relies on money to support our needs and fuel the global economy. Almost everywhere you go, there is a tag price for everything and the quality of your life also depends on how much money you have in your bank account.
As you grow, your capacity to earn likewise grows but inflation also increased your cost of living, thereby decreasing your money’s value. It is why our elders always told us to save some money in the bank for the rainy days. And as such, our money grows over time and we can be sure of getting a bigger amount than we initially deposited. And for years, we have thought highly of these financial institutions wherever in the world you may be.
Due to increased competition from non-traditional banking competitors such as Financial Technology (FinTech), increased specialization to serve specific customer s’ needs with speed, reduced need for face-to-face interactions between bank customers and the banks as well as availability of digital currencies like Blockchain, Ripple, Ethereum, the future of banking is uncertain.
However, modern advancements threaten the stability and the future of most banking institutions. The people’s lifestyle and habits have changed and they have adapted a more digital approach to doing things.
According to him, as technology is disrupting the nature of work at an unprecedented rate, there is the need for a new and inclusive approach to learning on the job. He added that while several researches has alluded to the positive correlation between income levels and educational attainment, it has been realiSed recently that, a college degree at the start of a working career does not answer the need for the continuous acquisition of new skills, especially as career spans are lengthening.
“Although the future of banking remains speculative, there are clear indications and a general consensus that a number of factors would continue to disrupt some already established banking models,” he said.
There would still be a need for banking among people although the need will significantly decrease as we probably are already witnessing now. For instance, payment systems and financial technology companies influenced the way people do banking these days, or perhaps, the lesser need for traditional banking.
For a brief moment, Wall Street stopped on Monday, as if time was suspended in an alternative reality.
President Trump, for the first time as resident of the White House, said aloud that he was considering breaking up the nation’s biggest banks. Of course, he had said it on the campaign trail, but this seemed different.
“I’m looking at that right now,” Mr. Trump told Bloomberg News during an interview in the Oval Office. “There’s some people that want to go back to the old system, right? So we’re going to look at that.”
The headline ricocheted around the email boxes of senior bank executives across the industry. At the Milken Global Conference in Los Angeles, where Treasury Secretary Steven Mnuchin had just finished speaking — and didn’t mention breaking up the banks — the hallways quickly buzzed about the comment, according to participants, as their phones lit up. Shares of bank stocks dived lower within seconds of the headline, only to recover quickly.
President Trump is known to issue controversial statements even as a private citizen. However, what he says now are of more significance considering he is occupying the highest office in the land but it might also be possible that whatever comments he issues have some merit and came from trusted advisers on his cabinet.
When it comes to banking, some form of stability builds trust and credibility. It is what the people are looking for in banking institutions. They not only put their money in it but their trust as well, and possibly their family’s future. Unfortunately, advances in technology also influenced customer expectations, making additional demands on how banks adapt to these changes and improve their services. And as such, it’s the reason banks are not making enough money and return on investments required by stakeholders. While the banks try to cope, it is not always easy as technology advances rapidly and there are likewise different facets in banking in finance that need to be considered before major changes can be made.