Can You See It? Invisible Banking Is Upon Us

The era of physical branches and dedicated banking platforms is fading, paving the way for more seamless, integrated systems that can operate in the background without requiring conscious effort from users.

Call it invisible banking.

Imagine wearing a ring that contains a chip that is linked to your bank and other financial accounts. You walk into a store, pick up a few products and walk out. Cameras and scanners throughout the store confirm that you are you and what items you have taken. Payment is automatically transferred from your bank account to the store. You don’t even have to think about it.

This future is fast approaching, thanks to artificial intelligence, cloud computing and the internet. According to a recent American Banker article, four major trends are leading us into the era of invisible banking:

Internet of Things – The gradual replacement of credit cards and cellphones by wearables and biometrics that allow payments to be made by facial recognition or simple taps on smart watches or finger rings.

Voice Banking – Some people start their day by asking Alexa or Siri for a weather report. It is not too far off for a virtual assistant to keep one’s bills in order, take out loans, place orders for goods, services, reservations, and order tickets to events simply by using one’s voice. The expectation is that eventually different operating systems will become interchangeable on an open-source platform.

Financial Budgeting – Apps leverage their visual features with graphics, color coding, and alert notifications to make it easier to track where and how money is spent. For instance, if a user wants to take a trip at the end of the year, the bank will automatically transfer money from the checking account to a savings account dedicated for the trip by considering the user’s spending patterns and average income. Another app feature helps users organize their debt by suggesting the best payment method at the moment of purchase or recommending the number of installment payments that best fits the budget.

Financial technology – So-called fintech firms are continuing to expand, offering financial services via the internet to customers around the globe, including opportunities to finance purchases at the point of sale.