All tagged digital banking
When fintechs first popped up a few years ago, these startups had a goal of disrupting and displacing banks in the world of financial services. Banks stood their ground and made small reactive changes, but kept systems and processes mostly the same. The relationship between these rivals has dramatically changed, with both fintechs and banks now working closely together to impact the future of finance.
As fintechs expand their core offerings towards becoming digital banks, the challenge of customer loyalty in a digital-only, non-customer facing environment becomes paramount. With only a simple download and a few screen taps needed to switch banks - - how do these companies build a loyal community of primary customers?
As far as fintech companies go, PayPal is among the first and most well-known for its online payment platform that offers an alternative option to using debit or credit cards. The company is now looking to go further by targeting an underserved market: millions of “unbanked” clients (adult consumers unable to have bank accounts due to various reasons), with deposit accounts and debit cards.
After years of investment in digital transformation, the top US banks have actually started to pull away with market share while smaller regional banks are left behind, based on a study by Accenture of US banks, in reference to core banking systems, back-office processes, and workforce development.
As the fintech movement continues to evolve from traditional banks to solely digital banks, startups and more established fintechs are launching efforts to become neobanks.
Neobanks are companies that target improving consumer banking through minimizing or eliminating fees and offering advice that customers need (most commonly around budgeting or saving) through a simple digital user experience.
Photo from WSJ.com