Digital banking evolution is turning your smartphone into your only bank.
The word “E-Commerce” has become associated with online stores, but there’s another form of commerce that’s even more personal- digital banking. The new smartphone app Venmo, which followed and then shot ahead of PayPal’s footsteps, has revolutionized how people hold and spend their money. Instead of having to take out cash from a bank, ATM machine, or have to spot your buddy for lunch, Venmo makes it possible to transfer money with the click of a button to your friend as long as they have the app on their smartphone. This is turning money into an even more intangible currency and making it incredibly easy to bank and make payments. There are even further ways that digital banking is becoming immersed into popular culture.
It’s no news that banks are taking it upon themselves to move into the digital world. Banks now allow checks to be deposited by having the user take a picture on his/her phone- an incredible feat. But now, payment and withdrawal is happening digitally too because of apps like Venmo and Paypal. From many digital banking apps, a
member can pay money immediately into someone else’s account on that same bank app. It’s essentially Venmo but between only one bank. This allows the bank to hang onto this money and simply move it around between accounts- a pretty good perk for the bank.
Capital One’s new ‘Capital One 360’ digital banking account allows anyone to set up an account- for free- online. There are also no fees and you gain some interest. But there’s a catch: it’s completely online. There’s no going to the bank to deposit or withdraw money (you’re not allowed). You can only deposit checks through your phone and receive direct money transfers from other bank accounts. Oh, and there’s that phone-to-phone payment like Venmo. This could very well be what we see more often; at the end of the day, not many people make cash from their job. Everyone deposits their checks and goes out with their debit/credit cards to spend money. This is still possible with this type of banking. Capital One, for instance, offers ATM machines around the world that don’t charge a dime. This way, the ATM machine and your phone become the bank to you. Pretty easy.
Regardless of the perks for the bank, this method of digital banking and payment is turning everyone’s money into liquid- the type of liquid that flows, quickly. As we turn into the future of E-Commerce and digital banking, it’s only safe to remember that these numbers on your smartphone aren’t like the numbers on your Minecraft game app. They’re as real as it gets and they’re hard-earned. So, although you have that card, don’t go around swiping it. No matter how easy it is to say you’ll buy this or that (it’s going to get easier to do this), self-control is key. There’s no telling what’s ahead for digital banking, but it’s surely going to be in the palm of your hand, at the click of a button. Be careful and happy spending.