Is FinTech a genuine threat to traditional banks?

Digital-only banks are becoming more commonplace with trends suggesting that within five years, 23.2 million people in the UK will use a digital-only bank – that’s 44% of UK adults. As it stands, only 12 million have a digital-only bank account so clearly the rate of uptake is expected to be very rapid*.

As the likes of Starling, Monzo and Revolut grow, it is important for traditional, established banks to assess why consumers are moving to fintech based banks. Personal finance comparison website, www.finder.com, has surveyed consumers to find out why they are switching. The top three reasons* were ranked as follows:

  • Convenience of app-based banking
  • Better rates sometimes offered by digital banks
  • Low transaction fees when using their cards abroad

These newer banks are fast becoming true competitors to legacy banks so the need for traditional organisations to invest in technology and digital transformation is paramount. Older banks are recognising this and making changes but the problem often lies in the size of the organisations and decades of different systems used which are falling behind or completed siloed.

THESIS ECM acts as a system integrator to pull all critical information into a single repository, breaking down silos of information. Once systems are pulled together into a single window, it is much easier for organisations to embark on a digital transformation journey to improve the overall customer experience.

To find out more about how we can help, contact us on thesis-ecm@haulmont.com or call 020 3214 5110.

*https://www.uktech.news/news/232-million-brits-will-have-a-digital-only-bank-account-by-2025-20200217