As mobile banking becomes more and more dominant, industry insiders like Dan Schatt predict that traditional banking methods will soon become a thing of the past. However, traditional banking is so ingrained into other industries that the switch will invariably have a ripple effect. Here are some industries that will be affected by the emerging dominance of mobile banking:
1) The Stock Market
The way people buy and sell stocks may soon change dramatically. The rise of mobile banking has coincided with the advent of online trading, which has made it easier than ever for individual investors to purchase stocks. However, you need to have a bank account and routing number to trade stocks online. With the increasing popularity of mobile banking, more and more people will likely start buying stocks through their phones, which could significantly impact the stock market.
2) The Travel Industry
One of the biggest beneficiaries of mobile banking has been the travel industry. Thanks to mobile apps like Expedia and Priceline, it’s now possible to buy airline tickets, book hotel rooms, and rent cars from the comfort of your phone. As mobile banking continues to grow in popularity, it will boost the travel industry.
3) The Job Service Industry
To get a job, you need to have a bank account. In addition, many employers require a direct deposit as a way to pay their employees. However, as more and more people switch to mobile banking, the job service industry will start to see a decline in demand for bank accounts. This could have a major impact on companies like ADP and Paychex, which make a lot of money from providing payroll services.
4) The Credit Card Industry
The rise of mobile banking has greatly reduced the appeal of cash. Experts say this is bad news for credit card companies like American Express and Capital One. For decades, these companies have been making a steady income stream by offering rewards such as frequent flyer miles and cashback on purchases made with their cards. However, with more and more people switching to contactless payment options like Apple Pay, income will decline in the coming years.
5) The Check Cashing Industry
One of the biggest sectors affected by mobile banking is check cashing services. Over 1 billion dollars worth of checks is written every year. However, there’s a good chance that many people will one day use their phones to cash their checks, which will have a major impact on the check-cashing industry.
6) The Banking Industry
Lastly, the biggest victim of mobile banking may be the banking industry itself. With more and more people moving their transactions to their phones, there’s a good chance that traditional banks will start to see a decline in business. This could lead to a wave of bank failures in the coming years.
Mobile banking is having a major impact on other industries. As this trend continues, we can expect to see even more changes in how we do business.