“Banks On Notice” Fintechs Are Coming for Checking Accounts and Debit Cards

“Banks On Notice” Fintechs Are Coming for Checking Accounts and Debit Cards

A New Financial Order

As user behavior among consumers continues to shift towards a mobile experience, fintech offers exciting new technologies that could potentially disrupt existing financial practices and establish a new order.

A majority of commenters perceive consumer banking as the area most likely to be disrupted by fintech companies because most startups have sought to target the end customer directly by providing smart solutions.

The technology provided by fintechs could change the way we transfer money, make payments, and manage our financial lives. As such, it is seen as having the ability to impact customers’ demand for checking accounts and debit cards, and this has the traditional players worried.

Meet the New Players

A PriceWaterhouseCoopers survey reveals that around 83 percent of traditional banks and credit unions believe that they are at risk of losing out their business to fintech companies. This is because new fintech entrants bring with them innovative and cutting-edge digital banking ideas that enable them to cater to the digital generation better than existing practices allow traditional banks to.

One of the major companies looking to change the way consumers bank is Venmo. Venmo is a peer-to-peer system which seeks to enable consumers to send money or request funds from each other using a mobile app. Such a system offers convenience and gives the customer a great deal of autonomy, as they do not have to rely on established financial institutions to send funds.

The New Venmo Card

Venmo is also on the verge of launching its Venmo Card. The card, which operates on the MasterCard network, will make it possible for a user to withdraw funds without having to go through a traditional bank. Payment company, Square, also has a prepaid debit card which functions in the same way, allowing users to make payments with a swipe.

In a related development, online payment system, PayPal offers the PayPal Cash MasterCard, which lets users use funds in their account to pay for goods online, in-stores where MasterCard is accepted, as well as withdraw cash at ATMs.

On its part, online-only lender, SoFi, which offers inexpensive rates for mortgages, personal loans, as well as student loan refinancing, seeks to revolutionize traditional banking models using SoFi Money. The product allows account owners to spend funds using the company’s own debit card. If you prefer to leave your funds in the account instead of spending them, they will earn an annual percentage yield of 1.10 percent.

Other innovative products that could overtake traditional mediums as the primary way individuals spend and send funds or invest include the Acorns Spend card from Acorns and the Stash Banking from Stash Investments, among others.

Fintechs and Account Use: What Statistics Say

Meanwhile, the number of checking accounts has dropped by nearly 100 million in the last six years due to fintech’s growing influence on financial services. A Moebs Services study uncovered that the total number of checking accounts fell from 690 million to around 600 million from 2011 to 2017, representing a 12 percent decline.

 

September 16, 2018 at 11:03pm
“Banks On Notice” Fintechs Are Coming for Checking Accounts and Debit Cards
A New Financial Order
As user behavior among consumers continues to shift towards a mobile experience, fintech offers ... #Economy #FinancialTechnology #PersonalFinancies https://t.co/NwhXw6m4eO https://t.co/jsKktMbuqK
September 13, 2018 at 11:02pm
Global #Food Crisis
Conflict and Climate Change Continue to Worsen Global Food Crisis

Food crisis and hunger are an increasingly pressing issue that... #Health #WorldCrisisInFood #WorldFoodCrisis https://t.co/3aCOH9iZQK https://t.co/OqEWhiPx11
September 12, 2018 at 5:24am
How to Ensure Employee Wellness

Employee Wellness
Employee wellness is a critical component to productivity and overall employee retention. It is... #Companies #HealthCare #Lifestyle https://t.co/NHIjQjCQ2q https://t.co/1SD2JNDUBU

About The Author

“Banks On Notice” Fintechs Are Coming for Checking Accounts and Debit Cards

“Banks On Notice” Fintechs Are Coming for Checking Accounts and Debit Cards

A New Financial Order

As user behavior among consumers continues to shift towards a mobile experience, fintech offers exciting new technologies that could potentially disrupt existing financial practices and establish a new order.

A majority of commenters perceive consumer banking as the area most likely to be disrupted by fintech companies because most startups have sought to target the end customer directly by providing smart solutions.

The technology provided by fintechs could change the way we transfer money, make payments, and manage our financial lives. As such, it is seen as having the ability to impact customers’ demand for checking accounts and debit cards, and this has the traditional players worried.

Meet the New Players

A PriceWaterhouseCoopers survey reveals that around 83 percent of traditional banks and credit unions believe that they are at risk of losing out their business to fintech companies. This is because new fintech entrants bring with them innovative and cutting-edge digital banking ideas that enable them to cater to the digital generation better than existing practices allow traditional banks to.

One of the major companies looking to change the way consumers bank is Venmo. Venmo is a peer-to-peer system which seeks to enable consumers to send money or request funds from each other using a mobile app. Such a system offers convenience and gives the customer a great deal of autonomy, as they do not have to rely on established financial institutions to send funds.

The New Venmo Card

Venmo is also on the verge of launching its Venmo Card. The card, which operates on the MasterCard network, will make it possible for a user to withdraw funds without having to go through a traditional bank. Payment company, Square, also has a prepaid debit card which functions in the same way, allowing users to make payments with a swipe.

In a related development, online payment system, PayPal offers the PayPal Cash MasterCard, which lets users use funds in their account to pay for goods online, in-stores where MasterCard is accepted, as well as withdraw cash at ATMs.

On its part, online-only lender, SoFi, which offers inexpensive rates for mortgages, personal loans, as well as student loan refinancing, seeks to revolutionize traditional banking models using SoFi Money. The product allows account owners to spend funds using the company’s own debit card. If you prefer to leave your funds in the account instead of spending them, they will earn an annual percentage yield of 1.10 percent.

Other innovative products that could overtake traditional mediums as the primary way individuals spend and send funds or invest include the Acorns Spend card from Acorns and the Stash Banking from Stash Investments, among others.

Fintechs and Account Use: What Statistics Say

Meanwhile, the number of checking accounts has dropped by nearly 100 million in the last six years due to fintech’s growing influence on financial services. A Moebs Services study uncovered that the total number of checking accounts fell from 690 million to around 600 million from 2011 to 2017, representing a 12 percent decline.

 

September 16, 2018 at 11:03pm
“Banks On Notice” Fintechs Are Coming for Checking Accounts and Debit Cards
A New Financial Order
As user behavior among consumers continues to shift towards a mobile experience, fintech offers ... #Economy #FinancialTechnology #PersonalFinancies https://t.co/NwhXw6m4eO https://t.co/jsKktMbuqK
September 13, 2018 at 11:02pm
Global #Food Crisis
Conflict and Climate Change Continue to Worsen Global Food Crisis

Food crisis and hunger are an increasingly pressing issue that... #Health #WorldCrisisInFood #WorldFoodCrisis https://t.co/3aCOH9iZQK https://t.co/OqEWhiPx11
September 12, 2018 at 5:24am
How to Ensure Employee Wellness

Employee Wellness
Employee wellness is a critical component to productivity and overall employee retention. It is... #Companies #HealthCare #Lifestyle https://t.co/NHIjQjCQ2q https://t.co/1SD2JNDUBU

About The Author






Get Stock Quotes & More Details





Wall Street Stock Quotes

Get a quote:

Own the iconic domain name (& other assets):
"WallStreet.com"
Be the Financial Search Engine

A Digital Financial Brand
Click Contact Us to inquire!

Wall Street Top Stocks

September 16, 2018 at 11:03pm
“Banks On Notice” Fintechs Are Coming for Checking Accounts and Debit Cards
A New Financial Order
As user behavior among consumers continues to shift towards a mobile experience, fintech offers ... #Economy #FinancialTechnology #PersonalFinancies https://t.co/NwhXw6m4eO https://t.co/jsKktMbuqK
September 13, 2018 at 11:02pm
Global #Food Crisis
Conflict and Climate Change Continue to Worsen Global Food Crisis

Food crisis and hunger are an increasingly pressing issue that... #Health #WorldCrisisInFood #WorldFoodCrisis https://t.co/3aCOH9iZQK https://t.co/OqEWhiPx11
September 12, 2018 at 5:24am
How to Ensure Employee Wellness

Employee Wellness
Employee wellness is a critical component to productivity and overall employee retention. It is... #Companies #HealthCare #Lifestyle https://t.co/NHIjQjCQ2q https://t.co/1SD2JNDUBU




September 16, 2018 at 11:03pm
“Banks On Notice” Fintechs Are Coming for Checking Accounts and Debit Cards
A New Financial Order
As user behavior among consumers continues to shift towards a mobile experience, fintech offers ... #Economy #FinancialTechnology #PersonalFinancies https://t.co/NwhXw6m4eO https://t.co/jsKktMbuqK
September 13, 2018 at 11:02pm
Global #Food Crisis
Conflict and Climate Change Continue to Worsen Global Food Crisis

Food crisis and hunger are an increasingly pressing issue that... #Health #WorldCrisisInFood #WorldFoodCrisis https://t.co/3aCOH9iZQK https://t.co/OqEWhiPx11
September 12, 2018 at 5:24am
How to Ensure Employee Wellness

Employee Wellness
Employee wellness is a critical component to productivity and overall employee retention. It is... #Companies #HealthCare #Lifestyle https://t.co/NHIjQjCQ2q https://t.co/1SD2JNDUBU

Fintech Articles Of Interest

  • The Benefits of Online Trading Platforms

    The Benefits of Online Trading Platforms

    Facebook Twitter Google+ LinkedIn Print Friendly Development of Cryptocurrencies These past few years have been very important for the development of cryptocurrencies. Many have even come to crown 2017 as …
  • How Artificial Intelligence and Machine Learning Will Impact Cyber Security

    How Artificial Intelligence and Machine Learning Will Impact Cyber Security

    Facebook Twitter Google+ LinkedIn Print Friendly AI Security and Intelligence Services The efforts of security and intelligence services to counter threats has led experts to consider using new concepts that …
  • IS BITCOIN THE NEW EVERYDAY MONEY

    IS BITCOIN THE NEW EVERYDAY MONEY

    Facebook Twitter Google+ LinkedIn Print Friendly The Bitcoin World Bitcoin has created a whole industry and a new way of doing business that one could doubt even its maker never …
  • How Is Bitcoin Marketing Itself

    How Is Bitcoin Marketing Itself

    Facebook Twitter Google+ LinkedIn Print Friendly Bitcoin Offers New Potential Wealth As a result of the Greek economic downturn and financial crisis as a whole, Bitcoin found itself at the …
  • ROBOS and Banks: The Dawning of a New Time

    ROBOS and Banks: The Dawning of a New Time

    Facebook Twitter Google+ LinkedIn Print Friendly Will Banks Use More Robots The use of Robo advisors is gaining prominence in mainstream banking circles. Clients have several options available to them …
  • Future of Blockchain

    Future of Blockchain

    Facebook Twitter Google+ LinkedIn Print Friendly   Future Finance Dominated by Blockchain The main thing to know about Blockchain for someone to know is that at this time it is …
  • Age of Cryptocurrencies – What are the Measures to Keep them Secure

    Age of Cryptocurrencies – What are the Measures to Keep them Secure

    Facebook Twitter Google+ LinkedIn Print Friendly Securing Cryptocurrency If anything can go wrong, it will most likely go wrong! Murphy’s Law sounds like an overly pessimistic philosophy, coated with a …

Archives

Pin It on Pinterest

Follow this blog

Get a weekly email of all new posts.