Challenger Banks: How Long Until The Digital Banking Revolution?
“People don’t trust banks to not screw them over anymore,” a fintech startup founder told me recently, “but they do trust them not to lose their money.” It was a throwaway comment after a long interview about the company’s technology, as I was halfway out the door. The startup in question has a truly disruptive technology that’s become a genuine challenger to the status quo of banking, but as this founder new: this is evolution, not revolution.
Better, faster and more convenient ways of doing things may not be enough to steal people away from the established banks – at least not right away. Changing who you trust to look after your hard-earned money isn’t the same as trying a new payment app, regardless of how nifty it is. Choosing who to give your paycheck to can be a surprisingly emotional decision, bringing out a conservative streak. Big and lumbering as they may be at times, Barclays, RBS, Lloyds and HSBC have one major advantage: history. Just 3% of Britons changed their bank accounts in 2014, according to a survey by the Competition and Markets Authority. This isn’t just inertia either: a whopping 91% of respondents said they were “very” or “fairly” satisfied with main current account provider, which in over 70% of cases is with the Big Four banks.
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By: Jessica Furseth : http://jessicafurseth.com
Jessica Furseth is a freelance journalist in London, writing about technology, business and culture. She loves the internet, but has too many tabs open.
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