How big banks can re-claim a piece of the pie (Part 1)
One of the hottest topics at every industry event I’ve attended recently is the threat of fintech disruptors.
As more and more of these small, specialist firms launch – think Monzo, Transferwise and Venmo – many retail bankers seem concerned that their size and portfolio is hindering them in the battle for customers.
Actually, I think it’s quite the opposite, and it’s the wide breadth of services that traditional banks offer consumers, in contrast to fintechs’ largely single-service offerings, that will prove to be their golden ticket to customer retention and loyalty. By offering a range of services, retail banks ultimately create more opportunities to understand their customers and therefore engage and grow with them – opportunities that single service firms don’t have.
But while this is an advantage, there’s a hidden disadvantage: multiple systems that each hold a fraction of the full customer story.
We all know the deal – insurance is one department, mortgages is another and they rarely speak.
So it’s no wonder that 52% of U.K. millennials who have a current or savings account prefer to do activities using a fintech company’s services versus the similar services provided by their bank.