We live in an instant
gratification world where we are used to even on our tiny phones being able to
order up photos and documents instantly and also to be able to send this stuff
instantly wherever we want to across the globe. We are spoiled and we also want
to vote and bank instantly too. These two brothers age 25 and 27 want to be
pioneers in the New banking industry that is devoid of marble buildings, long
waiting periods and lengthy applications to get loans, make investments or
deposit and withdraw funds. The boys noticed the problem while they were in
high school.
FINTECH sites are already changing
the way we bank. Their apps are hooking up borrowers with lenders directly. The
process is called Unbundling the Banks. Algorisms
are replacing human advisors for financial planning. Apps like Venmo let people click money to each other similar
to texting. If you want to wire money across borders. A company called
Transferwize is an app that can transfer money abroad and convert currencies
without bank tellers or high exchange rates. Users just swap with each other.
Do the big banks even realize this banking revolution that is going on? Why
aren’t they at least competitive?
The computer has put travel
agents out of business with apps like Air B & B. Taxi services are in an
uproar over Uber. Will your bank be the next economic fossil? All these new
companies are no problem with the newest generation of clickers on their mobile
phones. This new generation has 70% of them who would rather get their teeth
pulled at a dentist than go to a bank. They would rather put their social
security number on the web than fil out forms at a bank. We have learned from
the financial crisis that banks are more concerned with their welfare than the
needs of their clients. In the last year and a half investors have poured 20
billion dollars into the brother’s app called Stripe.
The apps offer services to lower
income families that banks would never approve loans for. 10 million American
households don’t even have a bank account. Bank fees, exchange rates and
commissions all add up at traditional banks that people just can’t afford to
contribute to a loan any more. If an internet company charges you fees it will
be much lower than a traditional bank’s fee. Why aren’t we all caressing our
phones and clicking away then? An app eliminates jobs and rental fees on bank
properties because they are gone. We just don’t need Betty at the Bank to click
away at the computer for us when we can just do what we need ourselves. The
shame is that she used to be a travel agent too.
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