Disruptors in the banking sector

Last year I wrote about the Internet of Things (IOT) and how it was a solution looking for a problem to solve.

Disruptors in the banking sector

As an agent of change the IOT is a slow burner – it will make huge changes, but will take time.

This year the New Year’s predictions about forthcoming technology trends all seem to include a focus on more imminent disruptive influences, and none more so than technology which moves services away from traditional suppliers and looks at more social networked solutions.

But perhaps the largest area of potential disruption for the banking sector, lies not in ground breaking technologies, but changes within the banking sector itself.

More digital-only banks are looking to move into the UK:  Germany’s Fidor bank is rumoured to have applied for a UK banking licence and Charter Savings Bank, Atom and Starling have all recently been awarded a UK banking licence.

Will new banks change the banking landscape?

With the greater ease of account switching these new banks will offer serious alternatives to the traditional banks, and tech savvy customers who are happy to do their banking through their phone or pc will have a far greater choice of banking provider.

This should mean that the traditional banks will have to develop and innovate in order to catch up with these newcomers if they are to retain market share. Increasingly, the banks that rely on branch networks and high street presence will see their customer base shrink.

Add to this all of the rumours that Google and Facebook will enter the UK financial services arena and 2015 could see the beginning of revolutionary change in the financial services sector. And for many banking customers, they see it as a revolution that is long overdue.