Despite the fact that mobile banking is only a few years old, nearly 40% of all Americans manage their accounts online. The reason for this meteoric rise is largely due to the incredible convenience it provides. Checking things like your savings balance can be done from anywhere, in a matter of seconds. This is why major banks are investing significant resources into their app development – as they’re all competing to be the online bank of choice for the consumer. However, banks aren’t the only ones getting in on the mobile finance trend. Third party apps like Venmo have carved out a role for themselves as well, allowing payments between two parties to be sent back and forth in a matter of seconds.
Fast Lives Require Fast Money
The age of immediacy is upon us. People have quickly grown accustomed to immediate results in nearly every facet of their lives. From logging into the internet to receiving “breaking news” literally as it’s happening – it’s fair to say that we live in fast times. With technology advancing by the day, it’s no wonder that our money is catching up as well. What used to take 5-10 business days to transfer funds, can now be done instantaneously. This gives individuals more autonomy and control over their finances, but it also puts more demand on the banks to act quickly and still maintain a low margin of error. The faster our lives evolve, the fast our banks will need to keep up.
How the Apps Can Help
With 22.9 million users, Venmo is becoming a Goliath in the mobile banking marketplace, especially among young Americans. By allowing users to deposit money into the app, banks have less stress to make the transfers themselves. When someone wants to make a payment through Venmo, they have the option to transfer it out of their personal bank account or use their already existing “balance” to draw from. This allows for faster transactions between two people and makes simple things like splitting a bill at a restaurant a sinch. There are a growing number of money transfer apps on the mobile marketplace, creating more competition, which forces these companies to innovate and process money even faster.
The future of mobile banking seems as if it will completely take over sooner rather than later. Young people are foregoing the lines at their local bank’s branch location, and are simply sending digital money from app to app. It’s still unclear what this all means for the global economy as a whole, but it’s appartnet now that technology in banking is the way of the future, and the world is going to have to make some significant adjustments in order to keep up with the trends.
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