Mobile Fintech and Bitcoin Can Eliminate Trips to Local Bank Branch, Says Jack Dorsey
The chief executive of payments company Square and social networking platform Twitter, Jack Dorsey, is mapping out how smartphone features continue to pressure bank branches.
The growth of fintech and the expansion of the cryptocurrency space will keep accelerating the digital world of moving money with more onramps, options, integrations and ease of use. This is why the future of local bank branches is questionable and financial professionals are showing concern and suggesting solutions.
Dorsey spoke at the 48th Annual J.P. Morgan Global Technology, Media and Communications Virtual Conference on May 12, explaining the way technology is bringing change by moving core banking functions from physical locations to mobile phones. He described how easy it is for anyone to utilize a smartphone to take advantage of several banking services.
In April, the federal government approved some leading tech firms (including Square) towards processing of Paycheck Protection Program applications for small business owners attempting to qualify for emergency relief funds as COVID-19 crisis lingers.
According to Dorsey, fintech companies possess infrastructure capable of reaching large segments of the population and capable of direct and quick distribution of money. Based on a report by CNBC, Square claims the disbursement of funds to 60,000 applicants is faster than any bank.
Square is becoming a platform capable of delivering banking services due to the crisis. People are signing up on Square’s Cash App to receive their stimulus checks and their unemployment benefits, thereby making activity on the App boom. It is such that the number of users on Square using direct deposits has increased from 3 million to 14 million within a few weeks.
JPMorgan Chase is likewise reconstructing its approach to businesses that focus on cryptocurrencies and have heavy investments in the digital economy. Reports have it that the bank is now providing services to cryptocurrency exchanges Coinbase and Gemini.
Featured image courtesy of GettyImages. Source: Cryptopress.