Watch out Banks. For Merchants have no country. And the Age of Sail is here all over again.

by: Rube Huljev

Twitter: @getkingdon

We live in very interesting times, where technology is changing everything it touches. Since mobile has taken center stage the “software eating the world” process just accelerated exponentially.

Why? Because mobile is in hands of every consumer, the most intimate device to reach and influence people, including at moment of purchase. And consumer is, and will remain, the king. Consumers decide the fate of merchants, which in turn decide the fate of banks.

So we do agree that customer is king of the food chain.

Banks? For many moons established business model of taxing merchants on transactions prevailed, and merchants perceive this as a tax — no added value. Likewise, they perceive banks as a (still) necessary commodity. Given a chance — they fly away to nearest lower bidder. No value add, no loyalty. No country.

And finally, the Merchants. We all need to consider their simple needs and always present issues.

Merchants want more profit, new customers, to lower their costs, especially on marketing.

Remember centuries old wisdom that still stands and always will — the mere spot a merchant stands on (his bank and his taxman) does not constitute so strong an attachment as that to which they draw their gains (customers).

So there’s a conclusion — he who holds the allegiance of consumers will have the attention of merchants. Banks wake up, offer transaction related services that bring customers more often, help discovery and make customers bring their friends.

Banks entering technology marketing? Business models move towards performance? Most probably. Fast. For if the Banks do not, Facebook and Apple surely are laying the rails.

The new Age of Sail has begun. Are you building fast ships?

Editors Notes: This entry has been submitted to the FINTECH Book, the world’s 1st globally crowd-sourced book on FINTECH. Readers that enjoyed this initial abstract are invited to share and like it so that it may be featured in a longer version.

The FINTECH Book is due to be released in April 2016 and is available for Pre-Order on Amazon.

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