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The Startup Impact on Internet Banking

We are now connecting globally to one another, person to person, network to person and person to network. 7 billion people are now able to send text messages to each other one to one immediately, well as receive the messages from others immediately, which is fundamental transmission.

We know of three major revolutions – agricultural revolution, industrial revolution and networking, as the last one is very young. In agriculture revolution we set barter system to exchange the goods with other people and after that we adopted ecosystem, in which we use precious metals like gold and silver to buy the goods. In industrial revolution we adopted banking system in which different countries built their banks and specified currency instead of gold and silver.

But now in this Internet revolution we are starting to get rid of formal exchange values, which we set in industrial revolution, like cheque books. Because, according to this revolution, this method is slow and expensive. Now we are replacing this slow and expensive method with chip base system, which is fast and has low cost. No overhead to pay for the exchange of values through the network-based economy. This is the value of new generation finance services.

Let’s suppose you want to see you favorite program on TV but you did not pay the utility of your TV. What will you do? Go to the center, pay your bill and then come back home to see your show. Is not it a long process? Instead, by using internet you can pay your bill by just one click. Isn’t it amazing?

You just need to feed your digital identity database share of Internet. After that you can enjoy all the facilities on one click. Instead of going outside you can order anything from your home with the help of your digital identity on the Internet. Your order will be completed immediately – that is the worth of Internet revolution.

The first digital wallet system was developed by two friendsAndrew Kortina and Iqram Magdon-Ismail. They name it Venmo. Venmo allows you to pay your money for your friend. It was the first digital wallet app that was used in smart phone. In 2015 there was $2.50 billion processing taking place in this site and over 10 billion processing taking place by the app in one year. An individual level work of two friends give the world the idea that has billions of dollar worth, which shows the power of the Internet revolution.

Now you can say that there is a giant war going on between the current banking system and digital banking. One is trying to destroy the system and other is trying to save the system. One focuses on disruption and other focuses on stability. One is trying to create the new world while the other is trying to save the current world. Note that Bank is the backbone of economy and if you destroy the bank you will destroy the economy.

Who will win the war? May be one day digital banking will become the alternative of current banking. Let’s see how far we can fall into the depth of technology in future.

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─ April 21, 2016