Fewer ATMs, more fingerprints in the future
BANKING will be in the spotlight this year, and not just from next month’s royal commission. Big changes for money are on the way, say financial services specialists, as new technologies and market forces reshape banking.
“People can position themselves to benefit from the changes,” said People’s Choice Credit Union spokesman Stuart Symons.
Fast payments will be one of the first moves, enabling immediate money transfers as BSBs and account numbers get replaced by email addresses and phone numbers as “PayIDs”.
“You can only link one account with each PayID so get it right early,” Mr Symons said.
Other key banking changes to put on your radar include:
Comparison website Mozo.com.au says you can say goodbye to an ATM on every street corner.
“We expect the banks will begin the process of amalgamating their ATMs into one network under one brand,” said Mozo director Kirsty Lamont. She said there will be fewer ATMs due to the banks’ inability to charge for ATM usage, and fewer branches.
FEES AND CHARGES
Ms Lamont said February’s royal commission would put heat on the banks, meaning fewer rate rises and downward pressure on fees.
“Charges that many consumers encounter on an everyday basis, particularly for tap and go transactions, will be seriously questioned.”
3TRANSFER FEES SCRAPPED
International money transfer costs have dropped in recent months as banks bowed to pressure from consumers and non-bank providers, and more falls are forecast.
Ms Lamont said new apps that allowed people to transfer money overseas without any fees were on the way.
Credit card issuers will try to woo consumers after their reward programs were watered down dramatically in 2017.
“Many rewards schemes are barely worth having,” Ms Lamont said.
Mr Symons said he expected credit card rewards to dwindle further this year. “But …we expect competition to heat up over low-rate and business cards,” he said.
5CRYPTOCURRENCY CLOSES IN
Bitcoin mania may be pure speculation but the technology behind it – blockchain or shared public ledger – allows efficient and secure transactions.
Finder.com.au spokeswoman Bessie Hassan said her firm’s recent survey of economists found that 94 per cent expected blockchain to have widespread use in the financial sector and economy.
Ms Hassan said banking apps were following phones by introducing technology that read our fingerprints and faces instead of account passwords.
“Fingerprint, iris or facescanning in banks… are far more secure forms of authorisation than cards with pin codes,” she said.