The age that we live in is one of instant access to information and highly competitive market places. As consumers, we are starting to take the conditions of our economy for granted, but we need only look at the history of banking to understand that things were very different, not too long ago.

Access to Credit

Banks were not always the primary source of credit, but now it is difficult to find people who do not have a bank mortgage, line of credit, or credit card. In fact, an entire range of smaller institutions have even been established to provide credit services to people who would otherwise be rejected by larger establishments.

Before this change, many families lived with very few credit options. Although it may seem appealing to yearn for a time with less debt, we cannot forget the conveniences that come with such a sophisticated credit system.

For example, credit cards allow us to pay for and reserve items remotely, without actually visiting a place in person. This has been one of the primary driving sources in the online sales revolution, which has taken convenience shopping to the next level. In addition, a time without credit was also a time when many people were forced to do without until they could save enough or find a family member from whom to borrow. Now, people have the ability to control their own finances.

Centralizing Banking Activity

Three decades ago, there were many more bank accounts in the UK than there are today. In a very short time most of these smaller institutions were acquired by larger ones, meaning that now there are scarcely more than a dozen global companies that handle most of our daily banking.

Not only does a more centralized system provide a greater level of convenience for customers, it has also allowed for improved security and a greater innovation in banking products.

Automated Banking and Banking Online

Instant information has changed the face of banking. Gone are the days when visiting the bank was a weekly chore that included making any necessary deposits, collecting the week’s household cash fund, and paying some bills. Now, people are carrying cash less frequently and relying more on debit cards and cash machines, thus eliminating the necessity of a special trip to the bank.

Online banking has further reduced the number of people who visit their local bank branch. Now, instead of paying bills in person people pay them any time of the day from the comfort of their home.

Educated Customers

Whether it is access to information online or just a new awareness of our money, we are fast becoming active participants in our financial decisions. In the past, many families trusted their local bank manager’s recommendations and trusted them to handle many financial decisions. Now, customers are becoming more sophisticated and are demanding more from their banks.

This, combined with an increasing competitive environment in the banking industry, has created a new level of customer service from banks; instead of taking their customers for granted, banks are starting to take a more proactive role in caring for individuals and their needs.