Banking in the 21st Century

Recently, I overheard that one of the ATM’s by my house is no longer allowing you to withdraw money, only deposit. This makes sense because every business (even a bank) is short staffed.

Walking into the bank to make a transaction has been the known routine for decades. If you needed money, you walked in and spoke to someone about withdrawing that money. If you needed to deposit, you also spoke to someone. Whatever was needed, you always knew you were going to speak to someone in person. However, mobile banking slowly started to change this in the early 2000’s.

Mobile banking started to peak around 2007. It’s rumored to have been offered as early as 1999 in Europe. Mobile banking may have been ahead of its time though. The smart phone only started to become popular around this time as well. The app testers were not a fan of the small screen from the phone and the “non-user friendly” aspects of the mobile banking apps that were on the rise.

It was all because of the evolution of the smart phone.

With the advancements of the smart phone and the tradition cell phone going out of style, mobile banking apps followed suit. Once the screens became bigger, it was easier to read all the details on the screen and follow along. Larger screens also allow for more features to be added to the applications such as, opening accounts, checking your credit score, and depositing checks. The advancement in smart phones also allowed for the advancement of security. Banking information is sensitive information and one of the biggest concerns for every user is privacy. The major banks that pioneered the mobile banking app ensured their people their security was top priority.

By 2012, almost a quarter of smart phone users were doing their banking all from the palm of their hand. Fast forward to 2020, I would say 75% of people are now doing banking online. Of course, there are still reasons to go into a bank, i.e., mortgages, loans, home equities. But, simple things such as depositing checks and paying bills are all done online.

I don’t have cash. Can I Venmo you for that?

Venmo rose to being around 2009, but became the go-to for transferring money and paying people within the last few years. All you need to do is hook up your bank account, credit card, or debit card to your account and add people as friends. There is a service fee when you transfer to or from a credit card but debit cards and bank accounts are fee-less. Soon enough businesses will start to use Venmo and Quickpay to allow for cardless and paperless transactions.

Electronic banking has advanced almost as quickly as smart phones have over the last ten years. People are starting to do more and more online with the growth of security and privacy. Although there are still some that are convinced that it’s not safe, the world is starting to move into an all electronic, paperless world.