Mobile marks the end point of classic banking


The finances that we have known to date have their days numbered due to the omnipresence of the Internet. And it is that managing money from an online platform represents the freedom and immediacy that today's youth and tomorrow's adults desire in their daily lives. Ultimately, the customers that banks are trying to adapt to.

The last generations born all over the world, from Europe to Asia, passing through Europe, do not know what it is to open an account in a bank branch, stand in the queue of an ATM to withdraw cash, access their financial assets during business hours or sign a credit in person, according to the report The Millennial Disruption Index.

As a result, banks must inevitably follow the pattern dictated by new consumers and, in fact, CaixaBank has recently presented its Imagine Bank strategy, the “first 100 percent mobile bank”, specifically aimed at so-called millennials. But it seems that this is only the beginning of the change of controls that users are demanding.

A new financial curtain opens, breaking with the past

This is confirmed by Brett King, a world-renowned economist, assuring that the banking of the future faces an absolute rupture with respect to what has been understood to date as the finance sector. “A new bank is possible and necessary, with new skills, in which the customer experience is the top priority and intelligent data analysis the key. Banks are not going to disappear but there will be consolidations and they will have to work with fintech companies (financial technology companies) ”.

In addition, for King, during 2016 we will witness a significant decrease in the number of branches that banks keep operating, a factor that will be even greater in the coming years. Reason is not lacking. According to data from the Bank of Spain, of the 46,221 branches that were counted in our country in 2008, in 2015 this number dropped to just over 14,000. Likewise, we must not forget the initiative taken recently by Banco Santander: the closure of 450 branches, a process that will be followed by the rest of the financial institutions.

However, and despite the colossal advance of online banking, one of the barriers it faces is the security offered by digital applications. Measures such as encryption, face recognition or key encryption are just some of those that have been determined to encourage the banking of the future, although a large number of experts maintain that they still do not observe the necessary degree of maturity.

"Fintech companies are gradually taking over the means of payment and money transfer"

Visa, one of the leaders in payment methods, affirms that "in 2020, one in five consumers will pay daily for their purchases with mobile phones"; In this way, together with the banks, which in recent months have fully engaged in launching mobile payment applications, the so-called neobanks, telephone operators, technology companies such as Apple or Google and fintech organizations are beginning to gain strength. The range of possibilities that opens up, therefore, is spectacular and all the players involved want to find their place on the field.

A good example of what is happening is the recent creation of the Spanish Association of Fintech and Insurtech (AEFI), which was created with the aim of promoting the development of start-ups linked to the finance sector and already has 70 associated companies.

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