German current account of the future?
Since 2015, there have been more changes to the current accounts than in 15 years before … the changes will even accelerate more!
Not everything in this article will be nice for you!
But if you deal today with what is heading to you and all of us inevitably, you can belong to the winners of the development.
How about you? Are you ready to learn and alternate the financial switches?
1. Situation picture
In the past and today, bank services were and are provided by banks. This is due to the fact that it is legally regulated.
If you want to provide bank services (e.g. current accounts) yourself, you need a bank licence. It is not easy to get such.
If you do not have a bank licence, but want to provide bank services, you can use the bank licence of a strategic partner. This is how N26 has made it during the first time. Such startups, also including TransferWise, Revolut, Curve and Penta, have really kicked the butts of the already established banks with their innovations.
Startups cause movement in the game
Some banks fell into some type of slumber. I have this impression especially thinking of the Volksbank and Raiffeisenbank, as well as Sparkasse. There, an incredible reality suppression rules.
Other banks, such as the Comdirect are on full throttle with the integration of Google Pay, Roboadvisor and a customer service, which is still unparalleled!
The future big names …
… in the financing service industry are in alphabetical order: Amazon, Apple, Google and Facebook.
Bank licences or e-money licences (no loans, but payments up to Euros 15,000) take place since years and if these giants need more “authorities”, they have the personnel and financial ressources to get everything they want.
Whether Facebook will offer current accounts in the future, as it already provides e-mail addresse like firstname.lastname@example.org, is questionable.
The integration of payments between friends and professional service providers (ad customers – through which Facebook earns most of its money), is probable. At best with a 1-click-financing.
Creditworthiness data should exist sufficiently in order to decide e.g. the purchase of a juice extractor in three monthly payments within fractions of a second.
Whether Facebook, Amazon and the like will take the role of the financing party themselves, is unsure. Here, they could rely on the current loan-providing infrastructure of the banks. If growingly less people apply for an instalment loan, they will probably be happy to receive business mediation from the Internet giants.
There are special banks since quite some time now that handle the financing for other banks. They are virtually only the technical liquidators. Almost no one knows them. They use the logo of the bank that has mediated the loan.
Such as the customers used the app of Number26, but the technical implementation ran within the bank system at the Wirecard Bank.
2. The good and the bad news for you
|(negative) change||(positive) change||Escape and solution|
|Cutback of the human customer service, because the salary and further employee costs become too expensive compared to…||… the artificial intelligence (e.g. Chatbots)||Premium-models for human customer service (e.g. fees or through very good creditworthiness/transactions)|
|e.g. abolishing of the phone customer service at N26||(somehow no big bank wants to be named today, however the technic is diligently tested)||e.g. Comdirect First|
|Costs depending on creditworthiness|
|Every bank has customers, who cost more net than they help to earn. These will be able to use less services for free or will be charged fees.||further free services, preferences!||build the own creditworthiness|
|This is the case at many loan providers already today. Key word: creditworthiness-depending interest rate||e.g. telephone customer service, others only have an e-mail access||e.g. Comdirect First|
|Cash and payments|
|Introduction of withdrawal fees on the part of machine operators, lowering of the daily withdrawal limits||Simplification of the electronic payments through the integration of the payment information into the mobile phone, watch, juwellery and body (!)|
|Scenery: daily upper limit of the cash expenditures through ATMs of Euros 300 per day charging 1 % cash fee||Carrying of the payment information in apps, supersmall chips||Adapting and hoping that the current payment methods will continue to be accepted for long|
3. What do you have to expect in the coming years?
- Multiple accounts system
You will need several accounts in order to be optimized in the use.
- Strategic adaptation
It will be unavoidable to make a change some time, because changes arise that cannot be predicted (such as with the diesel vehicles until 2015).
- Professional information and service source
Being a frequent reader of this special portal, you are regularly informed about the current situation development and receive practical tips and instruction for implementation.
You are at the right spot here!
4. With which bank should you go, if you do not want to change frequently?
The answers to this questions are highly individual!
However, you can copy me a little and take a peek into which accounts I permanently use, and follow our Sunday updates and see what I or people in our team currently try!
My personal view on the development of some providers
|Advantages for us smart bank customers:
|Challenges for the bank:
|Advantages for us smart bank customers:
|Challenges for the bank:
|former German banks that belong today to foreign groups
e.g. Consorsbank, Fidor
|The banks were purchased from a foreign country, so that these earn money and transfer it to the abroad year after year – smaller innovation power, tendential conditions worsenings.|
|Major German banks
e.g. Deutsche Bank, Commerzbank
|The private customer business is less profitable – a lot of bureaucracy, too little innovation power.|
|VR-Bank, Sparkasse||Too much vanity, a lot of suppression of reality (change), wanting to stick to the long existing –however, there are enough customers, who are the same! That means that these banks will continue to exist in the future, but smaller and even more expensive.|
|Startups (Germans, like from abroad)
e.g. N26, Revolut, Curve
|Very high innovation power, wanting to destroy the long existing (to make space for something new/better). Often a very high use! Partially very low costs.|
|Risik: Startups disappear again from the market, are purchased, change (worsen)their conditions at a later point of time (because they have to be profitable too).|
What do you think?
I am looking forward to your opinion and ideas. I am glad to read the exchange through the comments feature. 🙂
Bonus: Your most important task!
Building the creditworthiness!
Be or become a person that the bank wants to have as a preferred customer. You will be able to enjoy even more “fruits” (that others do not get or have to pay a lot for) free of charge.
Do you need help in the implementation?
If not yet done, subscribe yourself today for the Aufsteiger-Training.de (training for achievers).
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