Will Bank Changes Lead to Withdrawal From Human Interaction?
The investment banking struggles that contributed to the 2008 recession prompted stronger regulations for the finance industry. Unfortunately, some of the rules created to keep the larger banks in check also impacted smaller community banks, which have suffered as a result.1
However, the Trump administration’s goal to cut regulations by 70 percent to 80 percent in various industries could have an impact on banks of all sizes.2 This is just one more anticipated change for a banking industry that was already poised for substantial shifts.
Some experts project bank tellers may soon be replaced by more cost-efficient artificial intelligence,3 and e-banking is expected to displace as many as one-third of brick-and-mortar branches in the next decade.4
While technology, and possibly even artificial intelligence, certainly has its place in the financial world, it’s unlikely to entirely replace the necessity for human assessment, guidance and recommendations. One reason is that it’s important to trust the person who is helping you work toward your retirement income goals. As financial professionals, that’s something we strive to provide for our clients. Please feel free to contact us to discuss how we can help you create retirement strategies using a variety of insurance products to custom suit your needs and objectives.
Of course, it’s still important to embrace technology, with the hope that companies go about it the right way. Another concern as technology becomes more prevalent is the battle over private data. In recent years, many apps and websites have encouraged consumers to input financial data regarding bank and credit card accounts to help manage their money.
Banks have started pushing back to restrict sharing of this kind of data with technology companies, but with the growing political trend toward deregulation, the sale and purchase of personal financial data may soon become more common.5
It’s important to be aware of financial regulations and how they can help protect consumers. If you have questions about your rights concerning bank accounts, credit cards or mortgages, you can check out the Federal Deposit Insurance Corporation’s fact sheet for answers to frequently asked questions.6
Our firm is not affiliated with the U.S. government or any governmental agency.
Content prepared by Kara Stefan Communications
1Joyce M. Rosenberg. The Morning Call. Feb. 8, 2017. “Community Banks Hopeful as Lawmakers Target Financial Rules.” http://www.mcall.com/business/finance/mc-community-banks-hopeful-as-lawmakers-target-financial-rules-20170208-story.html. Accessed April 28, 2017.
2 Moira Vetter. Forbes. Jan. 31, 2017. “Saving Community Banks and Their Borrowers by Gutting Regulation.” http://www.forbes.com/sites/moiravetter/2017/01/31/saving-community-banks-and-their-borrowers-by-gutting-regulation/#60f6848672fe. Accessed March 28, 2017.
3 Luke Graham. CNBC. March 17, 2016. “Man vs Machine: A.I. Could Put You out of a Job.” http://www.cnbc.com/2016/03/17/man-vs-machine-ai-could-put-you-out-of-a-job.html. Accessed April 18, 2017.
4 MarketWatch. March 28, 2017. “Why the Bank of the Future Will Look Like an Apple Store.” http://www.marketwatch.com/video/sectorwatch/why-the-bank-of-the-future-will-look-like-an-apple-store/109B928E-1BA3-4DFB-8ABD-D0E43FB95B72.html. Accessed April 28, 2017.
5 Nathaniel Popper. The New York Times. March 23, 2017. “Banks and Tech Firms Battle Over Something Akin to Gold: Your Data.” https://www.nytimes.com/2017/03/23/business/dealbook/banks-and-tech-firms-battle-over-something-akin-to-gold-your-data.html. Accessed March 28, 2017.
6 FDIC. Winter 2017. “From the FDIC Inbox: Our Answers to Common Financial Questions.” https://www.fdic.gov/consumers/consumer/news/cnwin17/commonquestions.html. Accessed March 28, 2017.
This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.
The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.