The Future of Technology and Banking

by Andrew Schreiber 25. March 2013

Future Banking Technology

Technology is continuously changing the world we live in and how we as humans interact with others. For better or for worse, technology is continuously changing our everyday lives. I want to focus on how future technology could potentially change the way we interact with our bank. Two highly anticipated and talked about products expected to be released in the near future are the iWatch from Apple and Google Glass from Google. These two products have the potential to revolutionize the way we live our lives, including how we interact with our bank, handle payments and track our spending.

iWatch

Apple is developing a wrist watch that will be able to connect to and interact with your smartphone. Text messages, phone calls, appointments and alerts could all be displayed on your watch and you would never have to remove the phone from your pocket. So how can this innovation revolutionize the way we bank? Well, let’s think about it...

We have seen the use of Near Field Communication (NFC) technology in smartphones before, but never in a wrist watch! As you step into a checkout line and go to pay the merchant, you could simply wave your watch over a reader to pay. No fumbling with a wallet necessary. Current NFC technology still requires you to use your phone; this new technology will make the process much more convenient and natural.

But the technology won’t necessarily stop there! After you make your payment, you could have a receipt sent to your watch to confirm the transaction. If you want to be alerted when your balance drops below a certain threshold, this alert could be sent right to your watch. With many of us starting to use personal finance management tools, we could receive an instant update on our current budget after a purchase. The more informed we are about our money, the more comfortable we can feel about our financial security.

Google Glass

The potential of the iWatch is exciting, but in my opinion, not nearly as exciting as Google Glass! Google Glass is a new type of wearable technology that Google has been testing for the past several months. It is a pair of eyeglasses that have the ability to display an augmented reality to the individual wearing the glasses. Like the iWatch, the glasses would connect with your phone and interact with the technology in your phone (i.e. weather updates, text messages, internet browsing, driving directions, etc.) while still maintaining an interpersonal connection to the people around you.

How can this change the way we bank? Well, envision asking the device to show you the nearest ATM and then seeing that ATM right in front of your eyes. As you turn your head, it could show you the ATMs or branches in that direction and the distance they are from you.

Imagine using an ATM at a remote location and communicating with a bank employee through your Google Glass. The functionality of an ATM could possibly be expanded to include transactions and services that you would normally complete in person. Using ATMs this way would be much like a video conference, with bank tellers providing support on an individual basis.

In recent years, personal finance managers that allow you to track spending and set goals have become popular tools. Imagine going to a store and just by looking at the barcode of a product you could see how purchasing it would affect your monthly budget.

This same concept could be applied to large purchases that must be financed. When you are discussing how much you can afford for a new house or car, you could virtually see what your budget would look like with the new obligations. You glasses would show you what your cash flow would look like if you decided to take on the new debt. Seeing this visual aid right in front of your eyes could go a long way to help you make the most informed decision before making a major purchase.

Tools as convenient and interactive as the iWatch and Google Glass could greatly alter the spending habits of consumers. The final decision obviously rests with the consumer himself, but if we get to the point where we have insights and information literally right in front of us, it gets easier and easier to make smart financial choices.

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