Last week we gave you a peek at the upside of mobile banking moving forward. This week, by contrast, we’ll show you the downside.
It’s important to bear in mind, however. The downside of mobile banking isn’t anything intentional on the part of the software programmers and designers. Nor is it the fault of the companies that distribute the finished product. If it were, we wouldn’t be doing what we do! So don’t get us wrong: mobile banking is — or at least should be — GREAT. Mobile banking makes paying easier, more convenient, and can offer all sorts of cool features to boot. Junk fees can be a headache, of course, but you don’t have to worry about that if you’ve got Refundo. All in all, mobile banking is pretty awesome.
Rather, the negative effects of mobile banking result from the unintended consequences that come with any new invention. Let us explain. As soon as something new comes on the scene and becomes widely available, it renders old technologies obsolete. That is, if it serves some kind of function better than the products that came before it. This is what was illustrated last week with the example of the telegram and the telephone, but it holds just as well in the case of automobiles replacing the horse-and-buggy.
Obsolescence can mean hard times for those companies that haven’t managed to keep up with the times. Hence Schumpeter’s old law of “creative destruction.” New possibilities are opened, but the future for some of the old realities is closed. Just as the old saying goes, this is “the price we sometimes have to pay for progress.”