Advances in technology, regulatory change and consumer demand will result in an overhaul of traditional banking models in the next decade, according to new research by Deloitte.
From January 2018, new British and European open banking rules will come into effect, giving new market entrants the same access to data as incumbents.
Deloitte research found that over half (58%) of mobile banking consumers said being able to complete more banking-related actions through their app would be an important factor in persuading them to switch to a mobile-only bank.
Almost half (49%) would trust a mobile app from a digital payments provider for managing their financial accounts and services, while 43% would trust a mobile app from a traditional retailer.
“A range of fintech and non-bank entrants are already offering services that directly compete with incumbents,” added Neil Tomlinson, head of UK banking at Deloitte.
“Open banking could ultimately challenge who owns the primary customer relationship.
“Competition is also raised when personalised comparisons between providers are made clearer.
“However, while the threats are greater than ever for banks, so too are the opportunities.
“Those that embrace it have the potential to create new sources of revenue and new, highly tailored products, services and solutions.
“It is this personalisation that will create a deeper and more engaged customer relationship that banks hold the key to.”
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