Here at fintechwebnews.co.uk, we have learnt that with today’s tumultuous financial landscape, it’s no wonder that big banks have been struggling to navigate. Many have teamed up with fintech start-ups to stay ahead of the curve. This strategy has helped many banks stay afloat and ahead of the game.
Even though banks can find success working with fintechs, the rate of development and expansion of fintech companies is weighing on the banks, forcing them to adapt or collapse.
The public’s confidence in banks has also taken a blow, after the crisis of 2008 and large public scandals like the mis-selling of PPI insurance. In response to this lack of trust, the fintech sector has exploded in the last few years, providing customers with alternative choices.
Fintechs vs. traditional banks
Fintechwebnews.co.uk has reported that fintechs have begun to offer genuine and viable alternatives to traditional banks. Many of these alternatives have clear benefits like better service and value for money.
These banks, known as ‘challenger banks’ are squaring up to well-known high street banks like Barclays, HSBC, Lloyds and Santander. One great benefit of the added competition on the banking scene is that the existing High Street banks are driving for more innovation and improving their customer service.
These new banks are built around cutting-edge technology and aren’t the subject of any recent scandals. This is why banks like Metro Bank and Aldermore and dominating best buy tables.
Big changes for consumers
Because of the new competition in the industry, High Street banks have been forced to co-operate with fintechs. A great example is Barclay’s mobile payment service Pingit. It was designed to compete with Apple Pay.
Other banks have taken a less direct approach, launching new mobile banking businesses away from their well-established one. This is probably to get a fresh reputation away from their traditional bank image.
It’s not just commercial banking that has been changed by fintech. The worlds of retail banking, lending and wealth management has been affected too. Start-up fintech companies like Maxmywealth aim to change the way people manage their assets forever.
For more exciting fintech news, be sure to keep tuned to fintechwebnews.co.uk