Traditional banks with big branch networks, large staffs and old technology will die if they don't get digital and mobile, and fast, says Brett King.
“Banking 4.0 —Banking Everywhere but Never at a Bank”, isn’t really about banking — that’s just the familiar terminology Brett King uses to carry along his narrative. He comes clean late in the book when he describes how since 2009 more than one billion people in India, sub-Saharan Africa and elsewhere have gained access to a simple store of value…”initially none of these individuals have entered financial services through traditional branch access.”Bank 4.
Yet American banks are still stuck with paper processes; only 18 percent of banks and credit unions permit smartphone onboarding yet Simple, Moven, BankMobile and GoBank have offered it for years.New bank branch --- obsolete before the drive-through lanes are paved?Part of the problem is American regulators lag behind regulators in other parts of the world, especially when it comes to licensing tech-based banks.
King thinks we will see experiences like firms providing credit when you need it and then monitoring your spending, and discouraging unnecessary spending, so you can pay it back. That’s within the realm of technology now — Moven and Simple provide some of that. The big problem is it reduces bank profits by reducing credit card use.
He also sees changing coming to: “regulation built for 19th century banks on top of legacy systems built decades before the internet existed.”
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