More than half a lifetime ago when I was establishing myself in New York one of the major selling points of the bank I chose was the vast number of ATM locations. Pretty much anywhere I could think of had ATM’s branded by the bank which meant access to cash 24/7. Somehow electronically, I could have cash in hand any place day or night.
In the late 80’s ATM machines were a major selling point for any bank. The more automated tellers a bank had, presumably the better off they were. I remember being reliant and at the same time reluctant to use them. I prefer dealing with a person.
Sometime around the mid 90’s came online banking. The large Hong Kong based bank I was using introduced online banking that customers could use to lookup statements and do basic transactions. Generally there was a waiting period from the time a transaction was made until you could see it on the website but it was handy.
Paypal was the first online payment method I started using about fifteen years ago. With it money could be sent electronically from one person to another. I always thought of it as an automated wire transfer. Outside of an internet connection the only thing necessary was guaranteed funds. Paypal was merely a portal.
Several years ago a theoretical currency called Bitcoin was introduced. Bitcoins are generated electronically by computerized algorithms and are accepted payments by many merchants. What sets Bitcoins apart is there is no guarantee as opposed to US currency which is guaranteed by gold. Bitcoins are just a bunch of zeros and ones.
Smartphone technology has changed how we transact payments by allowing customers to scan their phone to buy anything from donuts to gas. Merchants are taking full advantage of technology by making smartphone payments more convenient to customers. Customers seem to like the technology because they don’t have to manage cash, checks or debit cards.
Both Android and IOS based devices currently include built in apps for managing money. Provided the device is capable, waving the equipped phone in front of a specialized receptacle will automatically debit and credit each account.
For whatever reason today’s generation of 20 somethings prefers to do their transactions electronically. I can’t tell you why because that’s a subject of another article. What I can tell you is the current generation relies on online transactions more than any other. They would prefer not to deal with a bank.
One of the startups I was helping a few months ago couldn’t get a traditional loan. His business idea was great but his personal credit was terrible. After being refused by loan officers I suggested he try crowd loans which almost immediately approved his idea.
Crowd loans can be used by investors or lenders to either lend or borrow money. Rather than go through the traditional process of evaluating credit scores, a group is appointed by the crowd loan agency that evaluates an idea or concept then approves or disapproves the idea. The bizarre part is there is no actual transfer of paper money.
Technology has changed how we handle our money. Not having to count how much cash we have may make overspending too easy. I haven’t made the transition to paperless money because I don’t fully trust technology. My major worry is future generations of people not talking to one another. Managing money electronically is just one more step towards human-less interactions.
(Jeromy Patriquin is the President of Laptop & Computer Repair, Inc. located at 509 Main St. in Gardner. You can call him at (978) 919-8059 or visit www.LocalComputerWiz.com.)