Many things have changed in consumer banking over the years. The technology changes in banking have made it easier for consumers. Financial technology is largely defined as any technological innovation in financial services. There are many consumer features available to financial services customers today which were unavailable 20 years ago. The three most common features are mobile banking, EMV Chip cards, and mobile payments systems.In a research done by Daily Mail, researchers found 77% of Americans own a smartphone. This number is more than double the number just five years ago.
With mobile banking, consumers can do many things that used to require one to go to an actual bank location. This includes being able to pay bills, transfer money and make check deposits. The first credit card was introduced in 1950 and debit card in the 1970’s.
Beginning in the mid-2000s, there have been a number of initiatives that have allowed debit cards to be used international and more securely in general. One example is EMV chip cards. EMV stands for Europay, MasterCard, and Visa. The name represents the three companies that originally created the stand and technology. The national transition to chip cards began in 2015, not all have transitioned but a majority of banks and business utilize the technology.Mobile payment systems have been a huge change in consumer banking technology. Apple Pay, Android pay, Master Pass, and Google Wallet are all examples of these mobile payment systems.
Credit card and debit card fraud has been a major problem in the U.S. Mobile payment systems has helped that number declined. The way it works is that the consumer’s card details are provided during the initial setup. Then the financial institution issues a virtual card, so the vendor you use it with will never receive your actual card number.
This process is very similar when one makes a payment to a vendor thru PayPal.The evolution of banking technology has made banking easier and more convenient for consumers. Consumers can conduct their banking from the comfort of their homes.
With EMV technology, in 2015 debit cards were used in 69.5 billion payments compared to 8.3 billion in 2000. Smartphones have become more than just devices you make phone calls and take pictures with.
They are multipurpose devices, mind as well call them minicomputers. With these upgrades and improvements in financial technology, banking couldn’t get any easier. Imagine the technology in the next 20 years.