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.

How big banks can re-claim a piece of the pie (Part 1)

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.