The future’s so bright
The article highlights the strong position of British banks and their recovery since the financial crisis a decade ago. Banks have made structural changes and are prepared for a slowdown in the future.
Indeed, the article states that the banks are poised to reap rewards from lucrative retail banking activities such as mortgages. Investment advice and financial plan that help people to plan for the future are also of interest to the banks.
Create Meaningful Engagement
We at Meniga see a lot of potential in this development. Our mission is to help people lead better financial lives. A key way to engage people to improve their financial habits is at moments of high motivations. Find out more by downloading our Insight Paper about Meaningful Engagement in Digital Banking.
The article maintains that the threat to established banks by the so-called challenger banks may have been overstated. After all, challenger banks have challenges of their own, especially since it can be difficult to manage rapid levels of growth.
Banking tech prowess
Georg compliments the banks on both staying on the cutting edge of technology. He points out that they are both fighting back by copying what the challengers are doing and taking the initiative.
“All the banks realise that where technology is concerned they have to move faster and change … most of them are making a lot of progress,” he comments.
Fintech fortune awaits
Fintech could actually end up helping the main banks to compete and optimize their operations. Georg points to the example of telecom firm Three which has leveraged its brand to become a sales and marketing powerhouse. This allows them to outsource more capital-intensive, lower margin tasks.
This enables the big players partnering with fintech firms to focus on the more profitable parts of banking. Indeed Georg warns fintech players to try to do everything banks currently do, they should instead focus on niches.
Read the full story below.
MoneyWeek is the UK’s best-selling financial magazine. Its readers primarily consist of private investors, City professionals and those interested in intelligent, easy-to-read analysis of the week’s financial news.