Digital has transformed every business, from small to large corporates, some of which are cutting ties with traditional banks and going it alone with their own in-house banks equipped to handle the evolving complexities of their operations. Corporates require real-time solutions tailored to their particular needs, and expect their banks to take the time to understand them; how can banks win back their trust and loyalty?
Introduced in 2015, PSD2 grants third party providers (TPPs) access to bank customers’ (both consumers and businesses) online account & payment services in a secure and regulated manner.
Advances in technology and changing attitudes towards risk and regulation have inspired many large companies to create their own in-house banks, affording them greater control of their finances and the opportunity to create a service tailored just to them and their specific needs.
At the heart of good customer service is responding to customer demands, needs and behaviors—thus banks are finding themselves faced with the necessity of responding to the burgeoning popularity of mobile and peer-to-peer payments amongst especially their younger customers. Hoping it will all go away isn’t an option; so how can banks create their own fast and secure instant-payments systems?
Traditional banks have a long history, which is good and bad—good because of well-established customer relationships; bad due to cumbersome legacy systems, some created in the days of analog, that struggle to adapt to the rapidly changing demands of the digital age. Like it or not, to keep up with customers and competitors, most banks have a lot more ground to cover.
Underbanked and unbanked citizens do not exist only in emerging countries. Developed countries have their share, too, and their financial institutions are quickly learning that their counterparts in emerging economies have much to share about how especially mobile-banking apps are making what was once inaccessible accessible to large numbers of consumers.
For years the banking industry in the UK was dominated by a handful of big banks. But that’s changed within the past six years, as new spinoff challenger banks have muscled into the arena; lying somewhere in between traditional banks and fintechs, technology-oriented challengers are sure to drive the industry into unchartered territory.