Retail banking – The coming revolution
Traditional banks are currently facing a difficult deflationary context, and they have to juxtapose two networks – a physical network of branches and a digital one. The maintenance of the physical network is legitimate, responding as it does to the need for local services.
It is in this context that Apple has caught the banking world on the hop by doing without a physical network for its new scheme. That was, incidentally, already the case for the credit cards that are now part of that set-up. Who has ever seen a high street branch of Visa, Mastercard or American Express, even though credit cards are a banking instrument? Apple has transformed a device issued by a financial institution (the credit card) into a full-scale bank.