Conventional banking could soon become a thing of the past with the use of the internet and mobile devices booming. They are gradually replacing usual banking cards as a means to pay a bill, Deutsche Bank warns.
Following a technological revolution in payments the web services could take the final step by developing their own facility for allowing credits and taking deposits, says Interfax news agency referring to a research by Deutsche Bank.
A ‘Google bank’ or ‘Apple bank’ that’ll certainly emerge will swallow the greatest part of the traditional banking market. Despite falling incomes and tightened regulation, the existing banks need to invest into new technologies to remain competitive at a time when new technology is advancing, the research says.
Traditional banks are getting unexpected rivals like Google, Apple, Amazon and Paypal that are working out mechanisms to effect mobile payments. The client base of Paypal is already comparable to that of many banks.
The ongoing crisis has made many banking systems in the West suffer huge losses, with customers increasingly doubtful a bank is worth relying on. In countries such as Spain, Italy, Germany and Great Britain between 60% and 80% of people asked said they had become less confident about banks in 2012, according to the Deutsche Bank research. Also non-cash settlements through on-line purses are developing fast. Non-banking structures account for about 6% of total settlements, with the figure projected to increase to 8% in 2013.
Most recently, Google said in November it wanted to make virtual accounts in its Google Wallet service real by introducing plastic cards linked to its online payment system. Reports said then it could turn the world’s largest search engine into a sterling bank.