With an app for everything these days, the rise of “social finance” apps, as they are being called, is becoming a concern for major banking institutions. These apps that allow people to manage their personal and business finances are offering alternative solutions to the more traditional financial services model. From a smartphone or iPad, people can apply for loans, transfer money, pay bills, send money to friends or family, and manage credit – all without ever setting foot in a traditional banking institution.
What does this mean for banks? They are losing face time and personal one-on-on interaction with their customers. Banks will have to work hard to make sure their own mobile apps are up to par with all the independent options if they want to keep customers in the long run.
Although mobile banking apps are convenient, it is nice to know you can still walk into a bank and speak to a real human being about your finances. A mobile app can’t give you advice in the same friendly manner that a human can.