Companies Turning Into Banks
Until a few years ago one was walking quietly down the street and was, in a rush, with a bank branch. The ATMs were – they still are – the purse of many users to have capital for their consumption. All that, now, is done through the internet, but , in this bleeding digital transformation has led many banking employees, offices and has given way to a greater concentration of companies.
In any case, money remains the merchandise to have access to products and services of the economy. But this is increasingly digital. The technology companies put the leg a while ago with their mobile payment solutions that took advantage of the capabilities of modern mobile phones. From there, services such as Apple Pay or Google Pay emerged , but it had a more basic philosophy: to be your mobile cardholder.
As initiatives have emerged that focus on technologies such as Blockchain (blockchain) and there has been talk to the full of cryptocurrencies such as Ethereum or Bitcoin, other consumer technology giants such as Apple, Google or Facebook have thought about giving a step more. Apple, for example, has created the Apple Card, a credit card designed to pay for items and services both online and in physical stores.
This card is physical, which can be paid in a traditional way through a POS-Point of Sale terminal-but also “lives” on the mobile in a digital format. The requirement is that you accept Mastercard. It has not yet arrived in Spain , but several knowledgeable sources have assured that the project is underway for next year. One of the most interesting aspects is its ability to “track” transfers, to monitor all expenses. In addition, it has an associated program of rewards for certain purchases, which can save 2% on purchases of products of the technological brand of the apple.
Google Pay Mobile Payment System
Google, the biggest internet giant, has also wanted to take advantage of this potential and, as recently announced through “The Wall Street Journal” , plans to start offering checking accounts next year. It is another step in the commitment of technology giants for banking and financial services. The project, dubbed “Cache”, will start with the support of Citigroup Bank and a credit cooperative from Stanford University (California). These accounts will be associated with the Google Pay mobile payment system , available for the Android operating system, the most popular in the world.
This initiative, however, is part of the pressure on the part of the regulators and governments that exert towards the “tech” companies, which mostly collect personal data from millions of users. The Bank of Spain has even warned of the possible risks of the emergence of large technology companies in the financial market. There, for example, is the Libra project led by Facebook. The social network has been working on a digital cryptocurrency that is encountering obstacles from regulators and proposing to make transfers over the internet .
Nevertheless, he has not thrown in the towel. In Brazil, the first tests of a transversal platform that allow sending money through its services, Facebook, Instagram and WhatsApp have begun . Three of the most used applications in the world. But it is not the first attempt of the company founded by Mark Zuckerberg . The social network has been testing an 18 month payment system for WhatsApp in India, and has processed more than two billion in donations through its fundraising tools, which were launched in 2015. Something logical, on the other hand, because according to World Bank figures, there are currently more than 2.5 billion adults, mainly in the countries of Latin America, Asia and Africa, which are excluded from the formal financial system, that is, they do not have any traditional financial services such as credit card or bank account. Technology, there, has made shopping easier.
They are not the only ones who have looked out the payment window; In China, where a lot of money has been invested in developing digital payment systems and works to integrate cryptocurrencies, there are companies such as Alibaba (e-commerce) or Tencent (video games) that are also working on these purchasing systems . The main problem they face is the confidence in still new payment models that, in many cases, come from companies that have starred in privacy scandals.
Experts believe that brand security and transparency will be the elements that will be imposed to adapt to the world of finance to the new times. “To talk about the application of technology in the new financial ecosystem, the” fintech “, there is a need for transparency in financial models,” says Leopoldo Abadía , Spanish professor and writer known for his analysis of the Great Recession, ABC , who has allied with Finanbest, automatic manager in which you can invest your money without complications. The disseminator claims, in that sense, “good practices and transparency in the financial sector”, advocating a “sustainable model” based on transparency.
This expert goes even further; In his opinion, in recent years citizens have become accustomed to living in a society that is too changing where the traffic of personal data is the order of the day. For this reason, it will lead a motto: ” the revolution of normality must be made “. In his opinion, it is logical that companies such as Facebook enter the financial world because of the true potential of such platforms to connect with millions of people. Finance is changing a lot. You have to think of my grandchildren; They don’t do a single operation from the bank. It is a completely different way. It has changed so much that I don’t understand them.