Non-banks are reinventing banking. Banks are letting them. How much sense does that make?
Markets don’t stand still. Customers move toward innovation. Nowhere is this more evident than in banking. Bankers who are complacent need to hope they’re close to retirement.
If you’re in banking, take a long, strong look at FinTECHs (or bank’s that have bought into FinTECHs). These companies are not legacy banks. They think the current banking model is unsatisfactory. They think consumers want more. So far, they appear to be right.
- These guys have figured out how to make investments in brick and mortar, and flotillas of ATMs, unnecessary. They are going to walk away, unopposed, with one of the most profitable areas of banking and take the best customers with them.
Why is this happening? Maybe the people who run banks are in denial. Maybe they are overcome with a sense of entitlement. Maybe they are hiding behind so-called onerous regulation. Maybe they just can’t get past “can’t.” All of this adds up to the conclusion that the trend for non-banks to out-bank the banks will accelerate. Take a look at the links below. If you’re a banker, maybe take three Xtra Strength headache tabs, first.)
It doesn’t have to be this way. Banks can fight back and win. Banks own the customer base. And they still own customer trust. The important thing is not to take these advantages for granted. Do not fritter them away.
The time to reinvent your own bank has come.