FINANCE
WHAT’S AHEAD
IN BANKING & FINTECH? WRITTEN BY BETHANEY WALLACE
I
n the last decade, the personal finance industry has advanced by lightyears. From how quickly we can pay bills to how we transfer money to friends and families to the ability to have fun while doing it, industries like fintech—that’s financial tech—and digital banking have completely transformed. Those changes, says Josh Rowland, chief executive officer and vice chairman of Lead Bank, are partly consumer-led. “Consumers are driving the trends. They’re looking at the type of services they enjoy from companies. It’s raising their expectations about what banks should offer,” he explains. When consumers have instant access to other technologies such as streaming, social media, and more, those same expectations are put on their finances. That means mobile transfers and the ability to open a bank account—and spend funds—almost instantaneously.
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“Ten years ago there was no conception that consumers should demand a different payment system. Now it’s table stakes that they make cash transactions by phone,” Rowland says. Apps that incorporate aspects like emojis or gamification with one’s income make it more enjoyable for consumers to manage. However, with these apps there are also risks. Finance-based apps are often only that, meaning they are not backed by the federal government nor are they held to legal standards. “What people don’t understand is that essentially they’re relying on [apps] to follow through with the promise that the transaction goes through. In terms of trends, it’s a bit worrisome. There’s complacency about where their money resides, how they can access it, and whether or not it’s safe,” Rowland explains. In contrast, he says, banks are highly regulated and scrutinized. They have to make good on their financial transactions. Even if a
