4 reasons why your banking relationship is about to significantly change


Will Google be your business banker? Think about it: Does your business really need a bank? Or maybe, you should just let Google handle it all.

According to this recent piece in the Washington Post the

…universe of (banking) competitors has grown to include T-Mobile, Wal-Mart, Google and a host of other retail, tech and telecom companies that are now operating like banks. These upstarts are gaining footing in the banking world with prepaid debit cards that customers can use to pay bills, make purchases and deposit checks via a smartphone camera — pretty much all the things you can do with your traditional checking account.

Banking with Google? Hey, why not. They’ll be driving our cars and controlling our vision soon enough, so why not just let them take over our finances too? If not them, then how about other online services like Simple, PayPal, and Square? They’re also out to replace our banks too.

The banking industry is undergoing an enormous change. And, whether you like it or not, your business is stuck in the middle of it. Your paper checks are slowly disappearing in lieu of electronic payments. Your need to make a physical deposit at your branch is becoming less necessary. It’s hard to believe that, for many of us, our moms and dads had to take cash out of the bank every week, and be there before the branch closed at 3 p.m.! Those were simpler times. So, like gas station attendants and Tab cola, will banks disappear altogether?

Relax. Google’s not going to take over the world. Or your banking. At least, not anytime soon. In fact your banking relationship will soon be changing… for the better.

“Yes, banking will significantly change for most companies,” says Keri Gohman Executive Vice President and General Manager, Small Business Bank at Capital One (a client of mine). “Good banks will not only adapt, but also play an increasingly vital role to many small companies.”

Gohman is right. Banks are surely not going away. That’s because many small companies will need the cash management and financing support that only a good bank can provide. But there is no question that your company will have a different relationship with your banker over the next few years, and particularly in these four ways:

continue reading »

More News