To complete the circle in the e-commerce business to Amazon, Google, eBay and Facebook just left them one step further: to become banks. Google already moving in this direction, from Wednesday offering debit cards in the U.S. to the millions of users of its electronic wallet (Google Wallet).
A year ago, Google and got into the financial services business offering loans to their customers. Started by Britain, following a similar initiative to Amazon. The idea was to facilitate financing companies to advertise on your portal. It opened a new front to generate income, which can lead to a battle with traditional banking.
Google, without actually still lending money, is now trying to reach the mass consumer. With debit cards, Google Wallet users can buy products in physical stores with MasterCard terminals. They can also withdraw money from cash from their bank accounts or the electronic purse. They are offered for free and is not subject to usage fees.
Both Google and Amazon have huge amounts of cash on balance, allowing them to take such risks without damaging results. Even greater is the mattress that is Apple. Not to mention the strong brand image with the consumer, which seems to be open to the possibility that these electronic signatures become banks.
Consulting firm Accenture published a couple of years ago a survey that indicates a predisposition to Apple and Google as a bank. Deutsche Bank analysts also take time warning that conventional banks can become something of the past, by the use of the Internet and mobile applications leading financial services at hand.
PayPal was the pioneer in this revolution in electronic payments. Is the most advanced in this field, to the point that their service looks almost like a bank. The recent financial crisis also severely damaged consumer confidence in traditional banking, not to mention the new regulation to which undergo and their losses.
Are also emerging applications that allow you to send money from a mobile, like an email. Yet all these operations encounter a bottleneck, itself derived from outdated technology used by banks in their transactions. In practice this means that a product purchased on Amazon or Google Play arrives home earlier than money.
Accenture has another report which reveals that 70% of executives in the banking sector are not satisfied with the innovation they offer to their customers, calling them poor or inadequate. Only HSBC and Banco Santander appears on its list of 50 most innovative companies. “Most do not understand how this can contribute to your business” they say.
This technological myopia is a real point of vulnerability for traditional banks, if Google, Apple, Amazon and eBay are able to break down the barriers that prevent you from operating as financial institutions. From Accenture also point out that banks will be much more difficult to become e-commerce companies in these banks.
As indicated Accenture, new competitors are emerging in the business of banking and therefore estimated that by 2020 35% of the U.S. market can be available to firms that are not now present in the sector. The 15% of the revenue of this industry, esteem, actors generate only operate in the segment online. That quote “technological newcomers”.
“Digital technology and the rapid changes in consumer preferences threatening banks that do the bulk of its business through branches” adventure Wayne Busch, Accenture, which indicates that it is something that is already happening. Granting mortgages or car loans via Internet doubled in a year while in the branches fell 15%.
If Google breaks into banking, the consequences can be enormous. The technology is already considered MountainView electricity operator in the U.S.. Not only is capable of generating its own energy to power the servers that are at the heart of its services, but also has the authority to negotiate prices and can sell any unused electricity.
The big banks has so far remained immune to internet (beyond layoffs in offices because no one goes to them), but it makes sense to remain so.For decades, the hypermarket killed the corner store, and unless Skype or WhatsApp big business killed the phone (international calls and text messages) or that hoteliers met them with a grain Airbnb (formerly with charming houses ). Sean virtual currencies (bitcoin), are loans between individuals over the Internet or, more easily, are the big Internet converts guarantors of mortgages, the big banks have stopped living their heyday.