The last time I stepped into a physical bank branch was August 2010 — a Bank of America in Washington, D.C.  I haven’t needed — or wanted — to visit a branch since then.

Like any consumer, I value my time.  I want to deposit and withdraw funds, send money, pay bills, and get paid as quickly and conveniently as possible.  That entails getting paid via direct deposit, using services like Dwolla to accept virtual payments and Square to accept payment cards, and paying bills online.  I pay with my credit / debit cards as often as possible and (rarely) access cash via ATMs. I can’t remember the last time I wrote or cashed a personal check and I hate receiving monthly statements via snail mail.  

Sound familiar?  I’m willing to bet you’re nodding, because my behavior and expectations are increasingly common.  

Most banks don’t understand that. And they’re up for a rude awakening in the years ahead.

Two prominent US startups, Movenbank and Simple, are different. Both think in a 21st century context with fees, services, and operating expenses to match. They understand that consumers are always online, whether at home, in the office, or on the go. They understand the power of social networks and peer-to-peer interaction.  And they see convenience as king.  

Banking as an industry as at the cusp of an inflection point — a point when the norm takes a dramatic turn. As you might guess, inflection points are both rare and extremely disruptive.  A historic example is the launch of Diners Club in 1950, which began unifying the payment card industry and ultimately spurred the creation of American Express, Discover, MasterCard, and Visa. A more modern example is Square, which launched in 2010 and practically transformed the merchant acquisition industry overnight by extending card acceptance to “the long tail”.  

Neither Movenbank nor Simple are certain winners (it’s too early to tell)  but both represent a new and revolutionary kind of banking — a radical disruption that threatens to topple incumbents, enamor consumers, and become immediately indispensable.  

Why are they so disruptive? Simply enough, because they cater to our actual behavior.

NB: This is the first of two posts. In Part II, I will explore how banking has been transformed in Kenya, and how the West can learn from Kenya’s success.  

Ben Lyon, VP of Business Development (@bmlyon)