Bank 2.0 - The Future of Banking

Technology and our trust in the banking system are changing the future of banking, and this unfolding story is gripping because it affects us all- we all have a relationship with money! This was obvious when I attended the launch of Brett King's book, Bank 2.0 (published by Marshall Cavendish) in London last month. I expected to pick up a dry, dull and dusty book and it has been quite the contrary. King makes some amazing predictions many of which are happening right now; though am sure you are wondering what Bank 2.0 has got to do with social media...

King's book says that cash is on its way out, our mobiles will become our banking system, eliminating high street branches and that soon it won't just be the wealthy elite who pay their bar tabs with a wave of microchip-implanted in their VIP arm, but we will all have that option. Like everything with technology all these things are happening fast. King spent a decade researching the material for Bank 2.0 consulting with some of the biggest names in the business - HSBC, Citibank, BNP Paribas, UBS and others. As a result he gives an insight into behavioural disruption, the future of money and its associated socio-economic effects. This book is a brilliant read for social media and web geeks, trend spotters, bankers, entrepreneurs, consumers and anyone doing business in the world today. It's currently in UK Amazon's top 20 banking book list.

No one could have predicted that in ten year's - 90 per cent of daily transactions would be electronic, that internet banking would provide more revenue than branches, that social networking conversations would be the main reason whether a consumer trust's a brand or that mobile banking would herald the demise of the traditional branch. Thomas Power, a leading UK social media expert, influencer and Chairman of the social networking site, Ecademy created a buzz this February. He asked what happens when Facebook becomes a bank? Do you trust your existing bank? Do you trust Facebook to manage your money? Power says, "I guess trust is the killer app. My three kids already run their life on Facebook. Is it a big leap to run their money there too? With a billion users and 10% choosing to bank with Facebook, that's 100m customers. Wouldn't that make Facebook one of the biggest retail banks in the world? - The Friendship Bank."

Fast-forwarding to less than ten years time from now and how we access and spend money will be unrecognisable. The rising popularity of applications, the proliferation of smartphones and greater familiarity with text messaging are driving the demand and use of banking services on mobile phones. As smaller banks follow large banks in offering mobile banking services, we will this year see a further acceleration of growth. An emerging trend is payments with customers showing an increasing willingness to use their phones as mobile wallets. I give you Bank 2.0!

Photo Credit: Consumerist