Talk about the year of financial banking revolution! It seems like 2018 is going to be one such high year. There has been a significant noise all around ever since evident changes in rules have been made. The changes rules specify how technological giants like Facebook, Microsoft, Google and Amazon are now going to have access to personal data of users at the traditional banks. It surely seems like the traditional banks have now gone the uphill route.
Time to Bid Old-School Banking Farewell
The beginning of the New Year 2018 brought a majestic technology relevant news with it. Tech giants namely Google, Microsoft, Facebook, Amazon as well as Alipay and Tencent are merging with traditional banks. This brings us on the threshold of technological financial revolution. It is time when old-school banking will see the outside door because non-banking platforms are certainly taking over.
Impact of Changed Rules
The impact of the changed rules has so far not been taken very seriously but off lately, platforms, businesses and individuals have started to become much serious about this change. How can there be no flip side to this story? After all, Google has the internet in its’ kitty and when your personal banking information and user data will become a part of this wide kitty – it is sure to bother you in the long run!
People Feel Differently
It is funny that all around the users of all these internet platforms have been feeling very differently. Let’s be honest. A major population of the internet world such as Facebook users for instance, are underage. They are either aged below 18+ years or do not have income source enough to have their own traditional bank account. So when online banking with Facebook is becoming the ‘it’ thing – this is greatly bridging major distance between people and banking standards. Majority of people are hence feeling very positively about this rule implication.
What Should Banks Do?
With the ongoing situation having become so critical, it is imperative that the traditional bank setups take drastic measures to safeguard their sanctuary. This means that a line of order should be established to analyze the risk behavior of the banking to get to the core of all actions. This also means taking several bold steps in 2018 like introducing direct risk pricing in this year.