Fintech-digest: banks without offices are becoming more popular
Finally, spring has come, and with it changes in the sphere of fintech have appeared. Generally speaking, there are a lot of changes, they occur every day - both noticeable and not very. But within the fintech digest it is difficult to single out all the most significant events, so we selected the most interesting.
Does the bank need an office?
“Electronic banks” , which do not have offices, except for the headquarters (and possibly a couple more offices), and which work with clients through their mobile application. This is especially noticeable in the UK. Here Monzo Bank and its "colleagues" are gaining popularity. Monzo's development is particularly noticeable: over the year, the number of customers grew by 300 percent, which, in turn, attracted investors and then again customers.
The advantage of banks interacting with customers through their applications is the opportunity to save money - both for banks and customers. No offices - that means you do not need to pay rent, there are no all associated costs, you do not need to pay office employees. For customers, plus a reduction in maintenance costs. Below the commission, there are no some monthly or annual payments, there is a solid economy.
Naturally, information about this is transmitted from person to person (plus, of course, advertising), and banks without offices are actively developing.
AI in the banking sector
More and more banks are starting to use the opportunities provided by artificial intelligence. Recently, analysts studied the results of a survey of bank managers. The purpose of the survey was to find out why and why banking organizations use AI (of course, its weak form).
The answers are quite interesting:
- The ability to analyze big data and identify hidden relationships between individual factors that affect one way or another on the activities of the bank. This answer was given by 60% of bankers;
- Increased work efficiency - both employees and computer systems. So answered 50% of respondents;
- The opportunity to save is 54%.
AI integrates separate databases, which allows you to create and offer individual solutions for different customers. Also, artificial intelligence improves the bank's ability to interact with its customers. The latter increases the level of loyalty. And yet - experts reassure opponents of the integration of AI into banking decisions, saying that robots do not take away jobs from people at all. On the contrary, modern technologies enable human employees to be more efficient by doing more work in less time.
Micropayments are a quick way to get what you want.
Micropayment services are gaining popularity in China. Generally speaking, China is ahead of the rest in terms of the development of this sector. Already in 2016, the sector reached $ 8.8 trillion (no, this is not a typo). This year, the figure should increase to $ 14 trillion. Well, in 2019, 85% of online payments in China will be in the mobile sector. Only 15% will remain on the share of desktops and tablets.
Actually, the development of the mobile payments sector is quite logical, because it is so convenient to always carry a mobile terminal with you, which can send money and accept payment. The advantages are obvious: quick and convenient payments without having to pay a commission for withdrawing funds or exchanging money.
In addition to payments, freelance services are actively developing, the basis of which is services for which the contractor asks for the minimum amount of money. This can be delivery of a parcel, purchase of products, consultation, creation of a logo or photo. The maximum amount that a contractor can request is about $ 30. The service works on the basis of a map that shows which of the performers is located near the location of the customer.
In addition, China also develops fast rental services, including bike sharing (similar to car sharing). You can rent not only bicycles, but also umbrellas, chargers, sports balls and even sex toys.
Such services are convenient, fast, efficient. The customer receives almost immediately what he pays for, and this is the main advantage of such services. Gradually, this area begins to develop in other countries.
Cryptocurrency Market Regulation - Officials' Blue Dream
Governments of different countries increasingly declare the need to regulate the cryptosphere and that "it cannot go on like this." Most often, such thoughts are expressed by officials of China, Russia and the United States. In particular, China intends to check the accounts of individuals suspected of working in the cryptosphere. If the person is guilty, the account can be blocked, and the offender will not receive his money.
In Russia, less stringent statements follow, but the requirement to begin regulating the cryptosphere comes from officials of various ranks. Not so long ago that the time has come to begin regulating cryptocurrencies, the Russian president also said.
In the USA, they also plan tighten control over the cryptosphere. Moreover, far from always everything is limited only to statements by officials. For example, at the end of last month it became known that the US Securities and Exchange Commission began sending out subpoenas to companies and individual experts involved in ICOs. Well, the tokens that were received during the initial offering were recognized as securities.