In recent years, there has been a great emphasis on financial technology, its developments and how it has become useful for the average person. We often forget that financial technology in its basic form was created for commercial use in the 1950s with the introduction of credit cards. Not long after, in the 1960s, ATM machines became popular as they allowed consumers to access cash without having to use a bank teller. Since then, there has been an explosion in the use of FinTech, from Apple/Android pay to ordering amenities through apps, such as transport, food, tickets and other material goods.
Additionally, institutions such as banking that hold the monopoly on financial aspects of our everyday lives, have also undergone revolutionary upgrades. By advancing platforms that can identify financial exchanges more accurately, banks and other finance providers are a part of a multi-billion-pound industry which has enabled them to double in number.
However, we must consider if this growth trend will survive the FinTech revolution. Consumer-facing FinTech services are seen as superseding the traditional banking structure. This is partly due to them being accessible to people in areas of the world where access to a financial institution may be difficult. Another reason is that consumer-facing apps have much faster and more convenient, qualities especially sought after by Millenials. Apps such as Monzo, paypal and Venmo make it simpler to transfer money amongst each other by avoiding the several steps of verification, making the process quicker, whilst still having protection against fraud. Such advancements have led to tech experts questioning the status banks will hold in the future.
What banks can introduce is a form of Open Banking. This greatly increases data transparency and therefore makes it easy for customers to see all their money in one place. At Akoni, we use Open Banking to enable businesses to maximise returns for their cash deposits. By having a single view of all their business deposits, no matter where they’re held, as well as having a holistic view of the marketplace of available interest-bearing products, firms can better manage their liquidity whilst maximising their return. And by opening a single hub account through Akoni, businesses can access hundreds of products across highly-rated banks without the hassle of switching accounts nor constantly monitoring across multiple banks.
Akoni helps businesses make the most of their cash. Register for our free smart cash tool at Akoni Hub.