Today, it seems like big banks and corporations are constantly in the news. With the recent financial crisis, there have been massive government takeovers as well as buy outs from other banks. This banking crisis was caused by loans that were not paid and was also one of the direct results of the housing crisis. Unfortunately because of the global connectivity of the world today, the events that occurred on Wall Street and in other cities aside from New York escaladed across the ocean to Europe and other places abroad.
People in the banking industry have (yet again) reason to worry. Mobile iPhones now have apps that are “mobile wallets”. These mobile wallets are used to store money digitally, eliminating the need to use a specific bank. Approximately 50% of the country has expressed interest in digital wallets. Consumers can easily make purchases and pay bills online without ever having to go through the bank. It is predicted that within 5 years, today’s smartphone users will use mobile wallets as their preferred method of banking.
This type of digital transaction is another reason banks have to worry. While going digital has proved to be successful for companies to grow, it has caused a loss of jobs. People no longer need to go into banks to deposit checks and pay bills. With online banking becoming a preferred method for on the go people, there is less of a need for physical banks. That’s the unfortunate truth of an online world. There is less of a need for physical jobs, but an increased demand for web marketing content.
In order to save banks and save jobs, the industry needs to stay on top of their game. Banks need to make sure their apps are comparable with these mobile wallets so people continue to use their resources. While going digital has created a loss of physical jobs in many cases, a complete overtake by mobile wallets would mean even more jobs lost. In a slow job market, it is essential that this does not occur.