Posted by heatherribelin
Banking timeline: branch banking > ATM banking > online banking > mobile banking > Social Media banking?
Banking has come a long way over the years. In the not-so-distant past, you would go into a branch and spend what seemed like an eternity waiting in the teller line to conduct a transaction. This method worked just fine for many, many decades. However, as our lives became more hectic, we had less time to spend in those pesky lines.
Enter the ATM (Automated Teller Machine). Now, instead of standing in the teller line, you had options. You could stand in the ATM line! Although ATM banking was met with skepticism in the beginning, it eventually took off and became all the rage – until our lives became even more hectic, that even finding time to stop at an ATM was a major feat.
Enter online banking. Now instead of waiting in lines at all, we can conduct most banking transactions in the privacy of our own homes. Although online banking was met with skepticism in the beginning, it eventually took off and became all the rage – until our lives became even more hectic, that even banking online at home was a major feat.
Enter mobile banking. Now instead of doing our banking at home – we can now do our banking while out and about, say, at a red light! Although mobile banking was met with skepticism in the beginning, it eventually took off and became all the rage – until our lives became even more hectic, that even banking online randomly in public was a major feat.
Enter social media banking. Now, we can do our banking without even leaving Facebook. How convenient is that? Pretty dang convenient if you ask me. But, ahem, social media banking is currently being met with skepticism! Can you believe it? However, I’m sure, if history teaches us anything, it will eventually take off and be all the rage! Then, we’ll quickly be whisked away to the next new form of banking, which will also be met with skepticism. And will also become all the rage.
With that being said in oh so many words, I would like to introduce you to one of the fearless banks who is now offering some banking capabilities via a Facebook app. Ing Direct’s (Canada) Orange Snapshot application integrates mobile banking with Facebook and allows users to view their account balances, history, and pending transactions, as well as view current rates. Although the capabilities are currently limited, they plan to offer much more in the near future, such as the ability to conduct transfers, make bill payments, and email money transfers.
Their main reasoning behind establishing a Facebook banking app is the fact that so many people are regular Facebook users, thus, they are providing a service to their customers by meeting them on their turf. Furthermore, according to Zion Bank (check out the nifty infographic below), 60 million people use online banking, and, coincidentally, 60 million people also own a mobile phone. 83% of people have paid a bill online in the past year, 77% have viewed their balance, and 62% have transferred money. It’s obvious that with the amount of online bankers, combined with the amount of mobile phone users, combined with the amount of Facebook users – that there has to be a huge market for social media banking apps, even if the users are skeptical now.
While the main issue on everybody’s mind when discussing new banking trends is privacy and security, the Facebook app allows read-only capabilities and customer information is stored outside of Facebook. It is also interesting to note that Ing has been experimenting with voice recognition capabilities to ensure even higher standards of security for their mobile apps. Like with all previous forms of banking, there are strict methods that need to be in place first in order to provide privacy and security when dealing with personal and financial information. Ing is currently working with IBM to ensure all security methods are in place.
So, what do you think? Do you think social media banking is the next new thing? Or, is that pushing the envelope too far? Would you feel confident banking on Facebook? Or, are you part of the skeptical crowd?
(Infographic Source: https://www.zionsbankblog.com/personal-finance/new-online-banking/)
(Top Photo Source: (http://socialmediasapiens.com/industries/banking-financial-services/)