No Place for Conventional Banking in Future
What is the last innovation you remember a bank providing in terms of value to you? Internet banking? Now that’s a bit embarrassing isn’t it. As for Google and Facebook, they’re both social Networks. Networks like these 2 companies would gamble with your money and lose it all. Since banks don’t like losing money and are made up of people’s money, they also have no business becoming banks, especially Facebook. These corporations have more connect to people than banks do. Banks are hierarchical and non responsive to many general needs. Banks have to reinvent and even though it may or may not be good to have these companies now entering a potential banking space, its good compete and gives something for the banks to work on. To be honest, we really think that they already are … But they wont build “walls”. We believe these Social Media banks will choose selling more lucrative products and processes. These services will be convenient, cross channel and efficient. Existing banks will have a terrible time to compete. Credit unions ARE banks. Many insurance companies are banks (State Farm, AAA, etc.) So banks growing out of a “membership” such as Amazon and Facebook are actually more like the original CUs!!! They don’t have to be a traditional bank, maybe they add some much needed legitimacy to bitcoin by joining up with other tech companies to support it.
