Whilst most associate ecommerce and doing business over the web as largely a physical phenomenon, one must not forget that in actual fact its the bits that really make the money. We all know about music; the industry acutely affected the most by the shift from the physical medium to digital. Nevertheless, the biggest industry of them all in many respects – finance – is only beginning to feel the Internet’s influence. The FT notes:
Banking is moving online. Millions of Britons are embracing contactless cards, mobile banking and other consumer-friendly technology, transferring almost £1bn a day over the web. According to the BBA, the industry body, the growth in internet banking is a “seismic change” in the way we manage our finances, help people keep track of their money and save them the time and hassle of queuing in their local branch.
This is what Paypal and countless other online payment services have shown us in the preceding decade or two. That is, moving and managing money is actually far more efficient and cost effective when it’s solely a digital concern. This creates lots of opportunity for those banks to help us to do so and at the same time, lots of headaches.
Source: The FT