Referring to Brett King’s newest article on I-CIO “An imperative for change”
(see http://goo.gl/tmuj2), I summarize the four-stage (r)evolution of banking in the following. In contrast to Brett King, I do not see a “revolution”, but rather an “evolution”. However, some banks will be overchallenged with that.
First Phase is “the arrival of the Internet (…) changed forever the way customers accessed their bank and their money, and this gave them control and choice.”
Second Phase is “the emergence of smartphones and tablets is a driver for portable or mobile banking”
Third Phase: “This (…) phase also involves the convergence of people’s mobile phone with their credit/debit card. (…) and it’s likely to result in the mobile phone becoming the day-to-day bank account.”
“The fourth phase will be the unhinging of the basic bank account from the bank. (…) they will just be left with specialist banking products, investment management and the movement of funds.”
Since “a 12–24 month development and deployment cycle” is “typical of most banks’ IT departments”, “it’ll be at least three to four years behind” for a bank “to see someone else’s ROI demonstrated before it commits.” This will give new emerging companies like Paypal, Apple, Square, Movenbank and others the chance to absorb major parts of the banking business.
Please visit the article of Brett King on I-CIO for more details (see http://goo.gl/tmuj2).