Traditional banks have been around for centuries and have essentially controlled the world of finance and customers. In a world where banks are seemingly constantly increasing interest rates and off the back of the global financial crisis, many people are looking for new ways to control their own money without the input of banks. Recent figures from a study by Yougov show that consumers continue to trust banks, but 66% of Brits believe that they do not work in the best interest of customers. Over half of the people involved in the study believe that banks may be the cause of another global financial crisis.
Recently fintech businesses have introduced new products to the market that allow consumers to take control of their finances. These businesses are changing the future of the financial industry all together and could have a massive effect on global banking. Here are four ways that Payments Technology is changing the business of finance.
One app has offered an utterly digitized way for consumers to manage their money instead of using a bank. Revolut allows users to transfer money between 29 European countries with no exchange fees across 24 currencies up to 拢5,000 a month. With their account, customers receive a free UK current account and a Euro IBAN account which comes with a prepaid debit card which allows users to make withdrawals up to 拢200 across 120 countries. They also allow users to convert cryptocurrency, such as Bitcoin, into cash. The accounts also come with budgeting and savings tools, offering a one-stop shop for managing money. If this wasn’t enough, users also get the mobile phones and overseas medical insurance, similar to additional perks offered by traditional banks. The BBC state that as of March 2019, the 2-year-old company has reached 4.5 million customers.
The Independent discuss how off the back of the global financial crisis in 2008, a cryptocurrency launched into the financial market by a group called Satoshi Nakamoto, claiming to offer a route to social, economic, and political change by taking control of currency away from banks. At its peak, the original cryptocurrency, bitcoin, reached $300bn surpassing the market cap of visa. As apps like revolution allow users to manage cryptocurrency more securely and convert it into cash within the same account as traditional currency, it seems that the use of cryptocurrency will continue to rise within the mainstream population.
There are several different investment mobile apps available in the market. Financial Times recently explored the use of the app Moneybox, that works by rounding up users’ spending to the nearest pound by connecting to their online bank account and then investing the spare change saved at the end of the week.
It is even possible now to apply and secure a mortgage through end-to-end online mortgage platforms. With Dashly, users upload their financial information and then compare mortgage products before using the app to complete their mortgage application. They are able to secure a mortgage digitally within a matter of minutes.
As payment technology businesses continue to develop, it may be possible shortly for consumers to take complete control of their own finances and the global financial sector.