DIGITAL BANKING
Laurent Descout , Founder and CEO of Neo , says : “ Neobanks provide a faster , easier and more secure service that banks cannot compete with . The pain points and inefficiencies that business customers endure with banks are well-known . From paying suppliers , limited and incomplete payment information to the high level of fees , businesses have been underserved by banks for a long time .”
Competition and collaboration Phillip O ’ Neill , Financial Services Director for Kin + Carta Europe , anticipates a more competitive and collaborative future : “ There will be a reckoning between competition , partnership and acquisition .”
He expects digital banks like Monzo and neobanks like Revolut to continue expanding their product offerings to compete with traditional banks .
“ We ’ ve seen a lot of legacy banks offer transaction categorisation and saving goals spaces , ideas that we have seen before from fintechs . It will also be interesting to see who starts offering fraud call checkers – like Monzo has – in the new year .
“ Open Banking makes it easier for legacy banks to offer these specific features without building them into their existing infrastructures , allowing them to innovate and eventually leapfrog those that they are chasing .
“ It ’ s too early to say whether neobanks will be able to scale enough to seriously threaten the stability of legacy banks – but it ’ s not out of the question .
“ On the flip side , I believe we ’ ll see more partnerships between niche fintechs and legacy banks - think the NatWest and Cogo partnership - which will enable legacy banks to offer more innovative products and services to their customers .”
fintechmagazine . com 71