Ten more years of real money

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Credit: George Hodan/public domain

We will still be using "real" money for at least the next 5 to 10 years, but financial transactions carried out using mobile electronic devices, such as smart phones and tablet computers, will increasingly become the norm during that time period, according to research published in the International Journal of Electronic Business.

Key Pousttchi and Josef Felten of the University of Augsburg and Jürgen Moormann of Frankfurt School of Finance & Management, Germany, explain how and mobile devices are being utilised increasingly by banks while the power of the individual customer is being augmented by the same technologies. Moreover, those technologies are also leading to novel financial services such as online bartering systems and virtual currencies, crowd funding and online social borrowing and lending. Given that the banking sector was among the first industries to widely adopt information technology - everything from and credit-decision systems to automated teller machines - none of this is any surprise.

However, in order to understand future trends, the team has carried out a Delphi study, a systematic and interactive forecasting methodology, the results of which suggest that mobile finance will continue to grow during the next decade in retail banking, but conventional transactions will remain largely predominant for at least another 5 to 10 years. Underpinning the evolution of finance is the perhaps too slow recognition by financial institutions that the relationship between customer and bank remains important and especially so in the age of social media and networking. In that era, everyone's opinion can count and a simple mistake or disinterest on the part of a corporation can become today's "viral" news story and a possible step down the road to ruin for the unwary company.

The team's study demonstrates that complex issues will continue to be dealt with through direct, personal communication while standard processes will be subsumed by new media tools providing customer and bank with the new typical form of access.


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More information: "The impact of new media on bank processes: a Delphi study." International Journal of Electronic Business. DOI: 10.1504/IJEB.2015.068305
Provided by Inderscience
Citation: Ten more years of real money (2015, April 22) retrieved 23 August 2019 from https://phys.org/news/2015-04-ten-years-real-money.html
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Apr 22, 2015
I hope cash money stays around for quite a bit longer. not that I relish carrying around a wad of paper bills and heavy coins - but the amount of profiling possible with electronic cash (not to mention the hacking potential) makes me want to use 'hard currency' wherever possible.

Apr 22, 2015
I think in my life the only real use for cash is paying tips off the record.

Apr 22, 2015
I hope cash money stays around for quite a bit longer. not that I relish carrying around a wad of paper bills and heavy coins - but the amount of profiling possible with electronic cash (not to mention the hacking potential) makes me want to use 'hard currency' wherever possible.

Not to mention - your entire financial history is there to view - to ANYONE...

Apr 22, 2015
Do SOO not burn your 'real money' anytime soon, fellas and gals. Fools have been prattling this verbal sewage for over fifty years. Banks would of course love to have us stupidly follow this 'trial balloon' bought and paid for by the very banking industry and spying government agencies that would have us hand over our money to their loansharks and our lives to their spies. Bottom line is we will always have 'credit losers' among us who cannot use the 'i-phones' cuz we did not pay the bill, criticized China, did not salaam and bow down to Muslims, etc. Such as those will always have something to trade in substitution for 'money' for whatever they want. Also, hackers will always be able to destroy any cipher our lower paid government hackers create, rendering electonic fiat shinplasters useless. On top of that, we have no unified world government able to enforce this worldwide. It would also require a pan-world single language of commerce...and pan-human literacy = NO WAY!!

Apr 26, 2015
^^ there are plenty of perfectly reasonable encryption algorithms that, with today's tech, cannot be broken. Many algorythms are, in theory, unbreakable in a human lifetime moore's law considered. the question is whether or not the standardized executable versions use these algorithms purely, or if they've invented a rainbow-table or back door.

learn to program, learn large prime factorization, learn expancive reversable hashing cyphers. write your own EXE, obfuscate it, and delete the sources... Repeat the whole process and use both with different keys. That's how your info stays safe.

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