We need to accept the fact that there has been a fast pace of industry movements. Some are getting off business while those who can switch to blend are in no hesitation. That's the clear message from technology, stay dull and get dumped. Tech is both a threat and an opportunity. Many industries are seeing the table turning against them and one of them is likely the bank. note, I used 'likely' who knows if they'll blend. Can Banks become a social media, an ALL in one app too?
You know our early understanding of what a bank is was simply a place where money is stored. They accepted that anyway, that definition seems to be biting back.Would anyone ever believe social medias will someone become a means of payment? Maybe it is because no one or only few ever considered that a text is a transaction. It is like other industries have put heads to birth a good grown for social media business to thrive. First, the Internet and it's service providers and followed too by the banks. They are not liking it anyway just that they never saw it coming.
source
I heard of Telecom service providers before social apps. When did the mobile phone surface? How about Facebook, X and the rest? The latter came later. I have seen one of our vibrant Telecom service provider trying to in incorporate a social media system. They have one, but lack the audience; you can't just beat Facebook and X overnight. They've also incorporated banking services which will take them time to draw customer attention. And here comes social media to worsen the situation again. M Elon Musk is tirelessly working on everything app. meta is not slacking too. What is the fate of the older banking systems?
Maybe just custodian of notes. It has been one big debate as to how long fiat notes will continue in existence when considering digitalization. My view is that it will remain. If you ask me why, the answer is the fact that there are still glitches when it comes to digital business. What if a platform had Network difficulties? We have seen this happen several times in banks. Those who had some spare note are always at an advantage to complete their instant business request.
source
It is always a big frustration when understanding how important transactions has become to the economy. Adding to that, how will many survive in the days of national uncertainties maybe like civil wars. Bankswill shut down operations or their servers may be down at that time and the fiat notes in circulation will be very vital. Another thing to consider is fraud activities. I know a lot is being done to tackle this but we have to admit, if all the nation's money gets into the digital realm, it becomes an all-eye target for hackers.
The banking industry without doubts is fusing, if they only trimmed to become cash custodian then a chunk of their interest will be moving a new direction. Mostly I feel this will affect commercial banks. We have seen tactics by CBN to work with stablecoins. Without doubts, so many uncertainties here, CBN want to remain relevant while conglomerates want to take the industry by surprise. governments have an advantage since they make the law.
To conclude, let me add, we are expecting a shift in the financial sector. An industry that was once underrated is really taking over. This is not the time to be in doubt, a new way of making payment has surfaced. commercial banks are likely to be forgone alternatives except for the 'for now' facts; they'll have to custodian the fee cash in circulation