The development of new mobile banking applications on a nearly daily basis and the younger generation’s preference for digital banking is causing drastic changes in the banking industry. For several years now, the biggest banks in Europe and the United States have been closing bank branches due to high usage of mobile banking. Last year, Bank of America, Citigroup and JPMorgan closed 389 branches. The banks must keep up with the technological developments in order to maintain their customer base.
The future of banking includes:
- automatic teller machines (ATMs) being used less and less for cash withdrawals as the world moves increasingly towards online banking and online transactions
- smartphones becoming the primary banking channel as they have the potential to provide the necessary information and even conduct money transfers and other banking transactions
- bank branches and bank employees being drastically reduced in number as customers switch to more convenient online banking options.