Covid-19 has accelerated bank closures but also fintech developments across all regions in Western Europe and the US. The pandemic has changed how people bank – it might not be (yet) permanent but the crisis is an accelerator for fintech trends like mobile-only banks. This fintech trend dossier is part of our client-exclusive Digital Dossiers at Wildstyle Network.
What is a challenger bank?
Challenger banks are tech companies. They leverage software to innovate, digitize and streamline retail banking. Challengers use digital distribution channels, typically mobile, to offer competitive retail banking services such as checking and savings accounts, loans, insurance, and credit cards. Well, that’s where these fintechs started with their business models.
Let’s take a look at the fintech trends, especially at the state of those who challenge the status quo and the traditional way of banking. Specifically, why they’re continuing to gain traction, how they’re expanding product sets beyond debit cards and digital accounts, and why they’re a threat and an example to traditional banks.
Traditional banks are not sleeping behind the wheel. They’re already responding. By mimicking the digital, structural, and behavioral trends of today’s challenger banks. This paves the way for an end of cash. It has never been closer.Continue Reading ›