My bank just started offering a cool new feature on its mobile app. I can now deposit checks via my iPhone or iPad. I take a picture of the front of the check and the back and upload the images through the app. That’s it.
I think this simple feature changes a lot of things. For example, I now no longer have to visit my bank. To get cash I use my debit card at the grocery store and get cash back. Now I can deposit checks remotely.
So, traffic at banking centers will go down. The ability for the bank to sell me insurance, mutual finds and other higher-margin products will go down drastically.
A lot of banks were acquired for their retail centers. I think that investment hypothesis is now starting to be negated.
One simple feature in an app. So many downstream consequences ripple out.