In Financial Services, The Front End Of The World Operates At Super-high Speeds: Comparative Advantages Are Measured In Fractions Of Nanoseconds. And Yet Back End Processes – The Amount Of Time You Have To Wait When You Sell A Stock Before Cash Hits Your Account – Can Take Days.
I think it was Bill Gates who said, we need banking, but we don’t need banks.
This is becoming abundantly clear by the day.
There is the recent news that PayLater, the digital loans people would be going into savings by May ending, 2018. (Of course PayLater has expanded its service offering to bills payments, funds transfer, topup, etc )
Here is the link to this imminent service
Employees Whose Organisations Are Listed Among The Over 250 Enrolled Employers, Are Eligible For Up To 80 Percent More Than Their Normal Loan On Paylater, As Far As Their Information Can Be Successfully Validated.
PAGA doesn’t want to be left out either with their Paga Transaction Savings Wallet, which is just being introduced
These FinTech people are sure trying hard to snatch market share from traditional financial institutions.
Time was when you would go through hoops and loops to get a small urgent loan from a traditional bank. Now, tying things up is closer to immediate. All you need do is build a sterling credit history over time, and you can have instantaneous funds – up to millions in some instances – with neither collateral nor mind_numbing bureaucracy that ordinary accompany such in traditional banks..
You also receive peanuts as interest on money that you save in your account. Fixed deposits have to be substantial to earn worthwhile interest (/rates) Now, you can get more decent rates from some of these digital financial outfits.
Things are rapidly changing with outfits like CowrieWise, PayLater, QuickCheck, etc.
The handwriting is on the wall.
With the sheer convenience of a service like the ALAT Virtual Dollar Account, coupled with its other first in class services, traditional ‘brick and mortar’ banks certainly need to adapt fast, do more or risk ‘giving their food to the cat’ to gobble up.
The bank of today resides in the palms of your hands. Stop all of you that are laboring, and have rest.