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.”
-
U Account introduces cash pay-in option
U Account has launched a cash pay-in option for its 50,000 current account customers.
-
Aldermore provides £6.27m loan for south London development
Acre Invest has agreed a £6.27m funding package with Aldermore to build a large commercial unit and 18 apartments in Sydenham, south London.
-
Metro Bank to launch AI-powered money management service
Metro Bank has announced the upcoming release of Insights, a new artificial intelligence-powered money management service.
-
Over 500,000 complaints made about current accounts
The FCA has revealed that 509,047 complaints were made to financial services firms about current accounts during the second half of 2017.
-
A guide to ethical banking
Some 56% of workers with a pension are interested in investing in community projects, according to recent research.
-
Countingup partners with PrePay Solutions
PrePay Solutions (PPS) has joined forces with challenger bank Countingup to provide business accounting and banking together in one place.
-
TSB and Enterprise Nation offer SMEs digital MOT test
TSB’s small business customers have the opportunity to undertake a newly created digital MOT test as they join the Enterprise Nation community.
-
Revolut introduces spare change savings feature
Revolut has become the latest mobile banking platform to add a spare change savings feature to its current account.
-
GDPR compliance highlighted at first FIBA roadshow
The Financial Intermediary & Broker Association (FIBA) held its first regional roadshow last Thursday (12th April) in north London.
-
Moneyhub integrates with Monzo and Starling
Moneyhub has integrated with Monzo and Starling’s APIs to provide customers of the digital banks with a comprehensive overview of all their financial assets.