Why your new bank will be Starbucks or Nike

The disruptive effect of digital and mobile technology lies at the heart of this, as well as a general decline in the levels of trust being placed in traditional institutions. Annual surveys like the Edelman Trust Barometer suggest that the world shows greater faith in peers and corporations than governments and central banks. This decentralization of trust explains the rise of peer-to-peer consumption models such as Airbnb and Zipcar, as well as the growth of alternative, synthetic currencies such as Bitcoin, which are fast, anonymous and borderless.But, for me, the greatest contributor to new forms of money is going to be brands. Yes, you heard right. In the very near future, brands like Amazon, Nike and Starbucks are likely to be running shadow economies in some form or other.Nike recently set up vending machines exclusively available to active users of their wearable fitness monitor, the Nike Fuelband. Purchases could only be made by redeeming points generated via physical activity.At Starbucks cafes in the United States more than 30% of transactions are made with "Stars" -- the reward points accrued against purchases over time, and stored on a Starbucks Card. In other words, one in three interactions at the till don't involve traditional cash.(CNN)Bakudaily.az