The Financial Brand’s Jim Marous looks at the future of banks and the consistent chipping away of many traditional consumers banking services by new innovative entrants.
“Uber was the first non-financial organisation to come out and say we have the option of becoming a banking service company beyond just our drivers,” says Marous. Currently, many banks feel safe because, depending on how you analyse the data, rates of consumers switching away from incumbent bank providers have been low. However, “the challenge is, just because a consumer doesn’t switch doesn’t mean they love you.”
Challenger banks, especially in the UK and Europe, have been operational for several years. “We’re already seeing a major shift to the FinTech firms to the competitor banks because the trust level is now getting to the point where it’s fairly equal with traditional banks,” he adds.
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