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Banking Experience Redefined By Tech Giants

By CIOReview | Tuesday, April 3, 2018

As the consumers are getting more inclined toward alternatives to traditional banks, there are high changes that technology firms move into the banking sector. For instance, Amazon is striving to get into financial products like Amazon Cash that enables the customers to deposit cash directly to their Amazon accounts in more than 10,000 retail locations across the US. Amazon Cash is also lending money to small merchants selling through its online platform and loanable fund has gone upto $1 billion in the one past year. Likewise, the e-commerce giant Alibaba has successfully accumulated the world’s largest money-market fund to provide $96 billion of loans in the past five years. In fact, Alibaba has gone a step ahead and has established an online bank called MYbank, which tracks consumers’ history with Alibaba and instantly approves loans.

These instances make a case for established tech companies to have a better share in retail banking than the adroit fintech start-ups.  One of the major reasons being that these tech giants already have the necessary element of success in place, which includes digital prowess, large clientele, experience in enhancing customer experience, and a brand name to trusted as banker. 

 Considering the response that Amazon Echo has received as a personal assistant, it would not be surprising that consumers would prefer voice-controlled assistants for their everyday banking transaction, instead of the cumbersome and time consuming experience at the bank outlets. Witnessing that companies like Amazon, Alibaba, and other companies are already providing payment services, credit cards and loans, the day might not be far when these companies will be a one-stop-shop for all the retail banking services.