60 second interview with Tom Blomfield

After the Digital Banking Live Debate we caught up with Tom to find out if he would ever bank with one of the GAFAs

Q. In 5 years, with which channel are you most likely to engage with your current account provider? WhatsApp/ Facebook Messenger, Amazon Alexa/ Siri or an App from your Bank? 

A. I actually don’t know. It seems like the mobile app is currently dominant, but we’ll see if that changes. I do think think there will be a shift towards accessing financial products from different institutions within a single platform or marketplace. WeChat in China is a good example of that.

Q. Would you switch from your current current account provider to one from a GAFA?

 A. No way. Monzo all the way!

 Q. Do you think it likely one of the GAFAs will apply for a Banking Licence in the next 5 years? 

 A. I think it’s pretty unlikely that they will get a banking licence themselves, especially in the US. There’s a federal law that requires separation of banking and commerce – you’ve got to choose one or the other.

I think it’s very likely that several of them will offer banking services, perhaps by white-labelling another bank’s products.

 Q. When it comes to exploiting Open Banking, who provides a bigger threat to the incumbents? The GAFAs or The Challenger Banks? Or maybe something else entirely?

 A. Open Banking will enable a new category of service – “marketplace banking” – where a company provides a hub or control-centre, allowing customers to access hundreds of different products and services from different providers within a single platform. I don’t think we have a good name for that yet.