Photo By: Turong Tuyet Ly
People’s day-to-day lives are constantly changing, even if these changes may be more noticeable to some than to others. The way we work, communicate, shop and manage our responsibilities has evolved thanks to new technologies.
For instance, technology has brought us into an era of immediacy, where almost everything is expected to happen faster, more smoothly and with as little effort as possible, and just one click away. This has become not only a benefit for customers, but an expectation.
The Change This Brought
This has affected the way in which many industries have to re-evaluate their way they work and reinvent themselves in order to keep up with technology and innovation’s pace.
A clear example of this is how traditional bank services are starting to lose importance due to how many bank users are now turning to the places they already visit, like convenience stores and retailers, for essential financial services.
As consumers become accustomed to faster and more accessible digital experiences, they may also expect banking transactions, cash withdrawals and other essential financial tasks to be just as convenient.
Michael Herron, CEO and President of PointsKash, a financial services platform connecting payments, cash, and loyalty rewards through kiosks and a mobile app, explains it this way:
“Consumers increasingly expect to manage their money where they already live, work and shop, rather than making a separate trip to a bank for every transaction. We’re moving toward a much more distributed financial-services model, where everyday retail locations become important access points for cash, payments, bill pay and other essential services.”
How Banking May Enter People’s Daily Life Spots
Imagine having to balance your life between a 9-5 work, a healthy lifestyle, your social life and for some, a relationship as well, now apart from that add to the list having to make time to go to different locations just to make a bank transaction, solve a bank related problem or having to withdraw cash for a daily situation. Not only does it sound hard to achieve, but for some people it’s almost impossible.
That’s why companies such as PointsKash started searching for alternatives that would fit together into people’s already busy schedules, and not the other way around. Its mission is based on helping millions of Americans which still remain underbanked or underserved by traditional financial systems.
The company saw an opportunity for change just by looking into what American citizens did as a basis on their daily routine, and how they could incorporate banking without altering the schedule they already have.
The solution was based on its KashPoint kiosks, through them PointsKash brings services such as cash access, money transfers, cryptocurrency transactions and loyalty-point conversion that happen directly into retail locations, the same which are already set into people’s daily lives. It’s not only about giving people an easier way to access their own money, but also about making sure it’s on a spot they already know, visit and feel comfortable attending to.
The Problem Behind Banking Infrastructure
“Where’s The Bank? Banking Access in the Era of Branch Consolidation”, a study made by the Federal Reserve of the United States, looked into how the access to bank branches in the United States has changed between 2014 and 2024. The results showed that branches dropped by 19% over that decade.
But why is this happening? The main reason falls right into the digitalization of banks. By having direct access to your bank account on your smartphone, people are less likely to go directly into a branch just to make a transaction.
We can also attribute the change to the rise in cost of having a physical branch as well as all the factors it entails like high maintenance, equipment, more staff and problems that may come along.
Another important factor of this change was the Pandemic. As the whole world was isolated into their own homes, industries had to shift quickly into making everything accessible digitally. This made a major change on people’s perspectives as they were presented with a more comfortable, easy and effortless way of making their bank transactions. Everything available from the comfort of their house. And as isolation started to end, people didn’t agree on leaving that comfort behind
What Does The Future Look Like
Even though we already have alternatives to common banking services and the problems that come along with them, these are not the only solutions that may appear in the future.
According to the study: “Financial Inclusion in the United States: Measurement, Determinants, and Recent Developments” made by the Federal Reserve Bank of New York, financial inclusion goes beyond simply having a bank account or access to a credit card. It also means ensuring that people can access the financial services they need to manage their money, handle unexpected situations and improve their financial well-being.
As new technologies continue to develop, so do new opportunities like making financial services more accessible, affordable and convenient. As we saw, a clear example of this is how retailers could play a role in this shift by bringing certain financial services closer to where people already shop and run errands.
Ultimately, the future of finances and tier services will depend not only on how many alternatives become available, but also on whether they help people manage their everyday financial needs more effectively.
