Digital disruption, “the change that occurs when new digital technologies and business models affect the value proposition of existing goods and services.” Various financial payment technologies and automation systems have resulted in huge change within the banking industry and the decline of the cash economy.

Always seeking convenience

We used to use our mobile phones to make err um, oh yes that’s right, phone calls! But now we use smart phones to manage most aspects of our every day lives, from connecting on social networks, to catching up on emails and even paying the bills and doing our weekly shopping. But the result of this increased convenience for us has meant a decline in loose change and cash in our pockets and reduced employment in the banking industry.

“The use of cash by consumers has fallen by 14% over the past 5 years” according to the British Retail Consortium Annual Payments Survey.

And this will only continue to fall rapidly with the recent introduction of contactless payments, which allow you to make a quick payment for goods and services under £20. Gone are the days of fumbling around in your purse for the correct change, just swipe your card and go – easy.



Accessibility anywhere anytime

Mobile point of sale is another solution to a genuine problem. Whether it is a small business who struggles to foot the cost of taking credit card payments or a business on the go who needs the flexibility to take payments anywhere and anytime. Such solutions cut out the middleman and allow businesses to receive payments quickly and on the go.

Banking apps have been my favourite development by far, the fact that I can pay wages from my mobile phone, check account balances and make transfers across a range of accounts with just a few taps to my screen wherever I am 24/7 is just brilliant! I remember giving out wages in little brown envelopes and being terrified someone was going to come knocking on my door and steal all the cash!

What’s next? Social payments…

Facebook were in the news due to a leaked article about capability to make payments on Facebook between friends and this mobile friendly service is definitely in the pipeline for Twitter. Read more here.

What about employment?

While we are genuinely solving problems and making life easier for ourselves by adopting these new banking technologies, it does concern me that the knock on effects are not always positive. Just a couple of weeks ago Lloyds have announced 9000 job cuts due to a bold move to automate many of their processes. This move aims to save them £1 billion by 2017, but at the cost of 9,000 jobs I wonder what impact this will have on our economy and already stretched families as more banks follow suit and lay off employees?