Don't bank on the banks

Here in Qatar, as with much of the Middle East, the population demographics are relatively simple – local born Qataris, “white collar” expats who largely work in the business sector and “blue collar” expats who provide nearly all of the labour.

The last group is interesting from a technology perspective because they tend to skip things. For example, most will never own a fixed line phone – but nearly all will have access to a mobile device for voice communications. They will also almost never have a PC and, therefore, never have ADSL broadband access to the internet. But, they may well have access to the internet through their mobile handset.

One other thing they may also never have is a bank account – something they share with millions of people across the developing or more remote parts of the world. And, with mobile technology and services developing fast, they may never have to. Already users without traditional bank accounts can store small balances on the mobile device, even with the potential to earn interest. Transactions are made easy, either person to person or for topping up (e.g. Pre-paid) accounts or for making small retail purchases. For these customers, the traditional bank account is fast becoming redundant – thereby reducing the banks’ ability to exploit this large and growing market.

Even those of us who have grown up with the idea that a bank account is not one of life’s optional extras may soon be shifting much of our business away from traditional banking services. For example, payments made using a mobile handset are faster and more secure than using cash or credit cards. In some markets it’s already possible to pay for parking or a train or bus ticket with your mobile – or to debit a credit card account when making an even larger retail payment. These types of transactions still require access to “back end” banking capability – but the role that the banks play is reduced.

And for my children, traditional banking may not be the “given” that it is for my generation. For example, how about pocket money that is transferred from me to them via our respective mobile devices? Their mobile effectively then becomes their “bank” or at very least their “piggy bank” – as well as being a purse or wallet all rolled in to one.

Of course, banks and banking have been around for hundreds of years – and they are not about to disappear off the face of the planet tomorrow. But, as with the dinosaurs, the Roman Empire or the humble celluloid film, we have seen before how often the mighty lose their influence seemingly overnight.