Companies like Google and Facebook are showing that they are better at mobile financial service than banks
Banks may soon lose their monopoly in the payments market due to technology and social networking companies entering into the mobile commerce space. Google and Facebook are just two of the myriad companies that are beginning to offer financial services to consumers, utilizing innovative digital solutions to do so. Similar companies are doing so as well, hoping to take advantage of a market that is growing at a rapid pace. By 2017, it is expected that some $60 billion in mobile transactions will be processed, and many of these transactions may not be processed directly through banks.
Banks have trouble developing useful mobile services for consumers
Companies like Facebook and Google have introduced consumers to promising mobile commerce platforms that have overshadowed similar services being offered by banks. Consumers seem to favor mobile services coming these companies because they are somewhat easier to use than those coming from banks. As these companies gain more support from consumers, their mobile commerce applications are likely to evolve, further encroaching on the territory of banks.
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Consumers are turning to technology companies for the financial services they need
Most mobile money services are designed with payments in mind, but the demand for banking services is beginning to rise among consumers. Money management is something that many mobile consumers are interested in, but banking applications do not necessarily offer them with the convenience they are interested in. As such, many consumers are turning to companies like Google to provide them with mobile money applications that can help them manage their finances in a more convenient fashion.
Some major banks are teaming with tech firms to develop comprehensive mobile platforms
Most major banks have shown little concern for this issue, but some are taking steps to ensure that they will always have a place among mobile consumers. Large banks are beginning to partner with mobile commerce organizations in order to develop more comprehensive, mobile-centric services. These banks have recognized that consumers are turning to technology companies to find services that are useful to them and are working to better cater to the needs of these consumers.