Are banks ruining?

How fintechs and emerging technologies and platforms are changing the Banking sector

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Banks, as everybody knows, are those financial institutions that pretend to help you to manage your money. Behind the scenes, however, we know they are not philanthropic and all they want is to make profit over our hard won money. If you watched the Zeitgeist documentary, you know what I’m talking about. If not, here’s the short story: banks are institutions created to make us financially dependent forever, so they can get richer.

Sad, eh? Yeah. (You should watch it anyway. You’re gonna kill yourself, but all you need to do is to breathe… and move on. T

hat’s life.)

The good news is that some nice folks who are tired of paying abusive taxes and interests (just like us!) decided to use the technology to save us. Or… at least… to help us dealing with financial in a less expansive way. Some Fintechs are making use of Cloud, Big Data, CyberSecurity and other interesting techniques to make it possible.

  • (YOU) OMG, tell me now! How’s that?
  • (ME) Have you heard about “online direct banks”?
  • (YOU) What do you mean? Banks 100% online?

Online-only banks

Exactly! And it’s not that new. Anyway… These banks have no physical branches and work exactly as if you were using an internet banking. Thus, everything is online, which makes possible to offer t

heir services with much less expensive taxes. I suggest you to take a look in the Online Only Banks Reviews to know more about each’s services, rates and other useful information.

  • (YOU) OK… bu..bu…but… if everything is online, how do I retrieve my cash?

Although all transactions are online, these banks have partnerships with ATMs, so you can use it just the way you do every Monday morning to buy your Venti Starbucks coffee that will keep you up and working hard to get rich.


Digital platforms for payments and transfers

But, if you’re a freelancer, you can make use of other online services that could help you save a lot of time

and money when transacting with other countries: PayPal and TransferWise.

I bet you’ve already heard about PayPal. If not, you’re really strange. PayPal is everywhere now, like a virtual wallet. You can sign up all your credit cards and bank accounts into it and use them virtually in many digital services, like Uber, AirBnB, eBay, other e-commerce sites and many apps that require some kind of payment transaction. Yeah, you don’t need to carry tons of plastic pieces with you anymore, just log in into your account and voilà!

But that’s something else… yeah… just like you can pay someone with it, you can receive payments from everywhere. You decide if you keep these payments as credits to use in the future or if you transfer them to a bank account.

Nice, eh? Yeah, pretty cool. But if international payment is your intention, you can also count on TransferWise. With better exchange and low administrative rates you can send/receive m

oney from almost everywhere. And it’s still less expensive than PayPal. And guess what: it was created by the first Twitter employer, who moved from Slovenia to London and needed to transfer money to his country. He had a Slovenian friend living too in London who did the other way round: he needed to transfer money from Slovenia. Since international transfers used to be very expensive, they agreed to make two local transfers instead: one in Slovenia, other in England. This way, both saved some money and had funds needed in each country.

It’s worth to research which one fits better your needs though.


Virtual currency: Bitcoin

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If you’re an adventurous of the digital world, you have already heard about Bitcoin, a digital currency that runs through a decentralized public network that is owned by no-one person or company.

  • (YOU) It can’t be safe.

Although there are mathematical techniques borrowed from the cryptography that record all to secure and verify transactions – which is called Blockchain – yeah, it has already been target of hacker attacks.

It works like a currency exchange or stock options: you buy bitcoins with real money from anywhere in the planet, and later sell them anywhere and retrieve the money. There are some taxes involved, but usually you skip local countries taxes.


Traditional banks challenges will be our opportunities

  • (YOU) Cool! But what about banks? Is it heir end?

Not at all. Although banks take a long time to change, they are more than ever required to invest in technology and (guess what!)… in customers.

  • (YOU) Ok, that’s new for me.

Yeap, it is. But with all these new trends and emerging technologies and services related to financial, there’s not much left to then than reinvent theirselves. As today things evolve quickly, chances are that banks get these Fintechs as their partners in order to offer a brand new services portfolio, for example.

The investments in customers might go from using the Internet of Things and Augmented Reality (subject of a next post) to offer more interactive and fluid experiences. Both combined with Big Data can make possible a tailored (but not invasive!) customer service and businesses interactions.

Bottom line? This all means something to us: many job opportunities in the next few years in many different areas to make us rich! YAY! – and we’re just mentioning about banks so far.


Take a look and enrich the conversation!


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