Challengers the big threat? Don’t bank on it!
What I am hearing :
If we believe the recent press, the FCA has around 29 applications for a banking license “in flight”. I suspect the real number of qualified applications is however somewhat lower. The big retail banks are spinning off clean start, banks, TSB, Williams & Glyn, and I am sure there will be more. This could be a crowded space if we are looking at vanilla banking !
I cannot recall when I last visited my bank branch, and if we look at the “Y” generation they are growing up with online payments through ebay, Google, ITunes and the rest. There are no staffed branches, no expensive call centres and no face to face contact. (low cost), however millions of people trust them with their payments and importantly banking details.
What I am seeing :-
Is the real threat to the large retail banks the likes of Google, Apple, Facebook? These are big TRUSTED brands with enormous financial muscle, throwing off cash, unlike most banks. They attract the best talent and they shape the digital world, so how long before we see a “Google Bank”. ATOM bank proposition looks like hooking into the pure play online banking revolution.
“We move $10 trillion a day,” Dimon said at the Euromoney Saudi Arabia conference in Riyadh. “We’re one of the largest payments systems in the world. We’re going to have competition from Google and Facebook and somebody else.”
The two consistent, must have themes are: Regulation and Digital/online. Unsurprisingly we are experiencing high demand for talent in this space!