Banking apps of the future

Despite hacking scares and concerns of privacy, banking apps are taking the app world by storm.

RACQ Bank is leading the way of innovation in banking apps in Australia. From cardless cash to easily splitting bills and paying friends with just the use of their phone number, it’s clear, the online banking world is changing rapidly.

Contacting your bank no longer requires you to line up in a queue while withdrawing and transferring money – it can be done at your fingertips.

The introduction of banking apps was predominately used for consumers to check their account balance and for inter-bank transfers. This has quickly advanced – with large amounts of apps dedicated to the replacement of cards via the use of phones or smartwatches.

RACQ Bank has this function already with the Digital Wallet, which turns member’s phones or smart watches into the payment platform. Forget having to pull out your card every time, just tap your device using contactless technology.

The future

In Europe, a new bank has been formed called ‘Monzo’. Monzo has no physical street branch, using its app as its only form of communication.

Many are referring to this type of business model as “the bank of the future”. Monzo is currently not licensed as a bank and therefore to create an account you need to have a separate membership opened with a registered bank from which you can transfer money.

Monzo’s app includes features such as:

  • Instant phone notifications following payments.
  • Spending is automatically itemised (for example: cafes, groceries, clothing).
  • Recording frequency of visits to stores and reporting on average how much you spend in each store.
  • Easily splitting bills with friends (although they must also be Monzo users).

While Monzo still has a long way to go, its innovative technology and business model is forcing banks to adapt to a technology-enhanced world.

Banking apps have altered the way we communicate with our bank and consequently, the future of street branches are now in question. There is no doubt that these apps and future banking innovation will assist in the documentation and recording of spending habits.

If you want to know more about RACQ Bank’s technological advancements follow our guide. You may also want to brush up on the ways smart watches and phones have changed the way we bank.