I am currently writing an essay for my Banking law class, with a focus on how the Internet is transforming the way consumers bank.

In Bank 3.0, Brett King remarks that the Internet has displaced the bank branch. Historically, the bank branch was at the core of banking. We have gone from being “dependent on a branch to dependent on the utility of the bank… Now with Internet banking being the primary day-to-day channel for banking in most of the world and branch visitation down, everything is moving to mobile.”

Right now banks are relying on external software like the Google or iPhone Wallet to provide the framework that emulates the card in the phone. Consequently, banks are losing the opportunity to link everyday payments to the bank account.

Clayton Christensen frequently warns about outsourcing a company’s future activities. By allowing new players to own the mobile payment experience, banks are outsourcing the future of banking.