Billionaire philanthropist and tech entrepreneur Jack Dorsey is mapping out how smartphone features are putting increased pressure on bank branches.
As fintech grows and the cryptosphere expands, the digital world of moving money will continue to accelerate with more onramps, more options, more integrations and more ease of use. That puts a big question mark on the future of your local bank branch that has started to resemble a Blockbuster Video outlet.
Speaking at the 48th Annual J.P. Morgan Global Technology, Media and Communications Virtual Conference on Tuesday, the chief executive of payments firm Square and social networking platform Twitter explains how tech is shifting daily behaviors by moving core banking functions from brick-and-mortar locations to mobile phones.
Last month, Square was one of a handful of big tech companies that was approved by the federal government to process Paycheck Protection Program applications for small business owners who are trying to qualify for emergency relief funds amid the coronavirus crisis. Dorsey offered the company’s help, noting that fintech firms have the existing infrastructure to reach large segments of the population and can distribute money directly and quickly.
CNBC reports that Dorsey’s firm claims it has disbursed funds for 60,000 applicants thus far, much faster than any bank.
The crisis is rapidly turning Square into a platform that can deliver banking services. Activity on Square’s Cash App is booming as people sign up to receive their stimulus checks as well as their unemployment benefits.
CNBC’s Kate Rooney reports that the number of users on Square who are utilizing direct deposits has soared from 3 million to 14 million in recent weeks.
Dorsey describes how anyone can easily use a smartphone to harness a suite of banking services.
“I download this app, and I’ve got a card. I’ve got a way to hook my payroll to it. I’ve got a way to buy equities, which I never had before. I can buy this weird thing called Bitcoin and that’s cool. And I can use this card at an ATM. So what else do I need?
That’s what informs a roadmapper – what are those critical functions that help us replace a bunch of trips to a bank branch.”
JPMorgan Chase, the largest bank in the US, is also revamping its approach to crypto-focused businesses that are heavily invested in the digital economy and provide swifter ways of moving value. The bank is now reportedly servicing cryptocurrency exchanges Coinbase and Gemini.
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