The first official US bank was created around 1791, the Bank of the United States. Through wars and revolutions, times of peace and triumphs of mankind, banks have continued to excel and never grow out of fashion. Though today we see a different era of banking emerge, and JP Morgan Chase’s Jamie Dimon has not let this fact go unnoticed. Dimon (JP Morgan Chase CEO) attended the Euromoney Saudi Arabia conference in Riyadh. During this conference Dimon said, “We’re one of the largest payments systems in the world. We’re going to have competition from Google and Facebook and somebody else.” Dimon, like many others have noticed Google take a stab at payment methods and sees a time where adaptation is necessary for survival.
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Technology is a beautiful thing, we allow it to make our everyday lives simpler, but for some companies technology is a threat. Take for instance BlockBuster, that video rental store from our childhoods. BlockBuster was the best way to rent a movie. We would pick up some popcorn candy and drinks, then enjoy a nice night cuddled on the couch watching a movie. Then Netflix came into the picture. Delivering movies straight to your doorstep, taking away the need to drive and leave the comfort of your home. Just wait for the movie in the mail and when it arrived, watch it, then send it back. Couldn’t get any easier many thought, then came streaming. Technology shoved it’s way into the movie rental market, and became the absolute best way to rent a movie. No need to leave your house, open an envelope, or send it back. Simply log in, select a movie, and hit play, done. Technology has now set it’s sights on the way we pay for things both online and in stores.
PayPal has been around for a while, but it’s gotten easier to use over time. Then throw in the mix, Amazon’s payment methods, where buying a product is a click away. Who could forget Google Wallet, where all your card information is stored on your device-NFC Enabled- and you can pay with a wave of your phone. These methods are definitely more convenient than putting in your card info every time you place an order. Even easier than pulling out your wallet, searching for the right card, and then swiping it at a register. This is where the darkside of technology rears its evil head-for banks. Banks now have to make sure they stay up to date with technology. Sometimes throwing an app out there won’t be enough to stay afloat. Some banks may turn out like BlockBuster and go out of business, though there are a few things that are protecting banks from Google-regulations.
Banks undergo a multitude of regulations in every country, a clear set of rules and guidelines set by the governments. These regulations are meant to keep things clean between the banks, the people who use them and businesses. This regulatory system may not always work 100% of the time, but they exist. It is a grueling process to go through from reviews and requirements, to financial reporting and transparency. According to Dimon, “There’s no way Google wants to be a regulated bank.” Though Dimon thinks that the reason these new payment methods are growing, is due to these strict regulations banks have that Google doesn’t have-yet.
It is no secret that Google has been working to improve the shopping experience. With programs like Google wallet, to Google shopper(a personal shopper for everyone) Google is certainly looking into the matters. Will we see more virtual banks pop up with the Google login info required? Maybe not soon, but you can’t underestimate the power of Google. What do you think, Would Google stand a chance against JP Morgan Chase, or even Wells Fargo? Would you drop your current bank if Google offered an alternative? Let us know down in the comments section, or on our G+ page.