FinTech Magazine February 2020 | Page 28

BANKING
28 consumers , as well as the industrywide focus on building user experience and personalisation into financial services , Walsh told the audience that “ there are just too many consumers in this country that are underserved and overcharged by the existing banks ”, pointing to a society that has experienced two decades of poor income growth but a steady increase in outgoings . “ And if you don ’ t have a lot of financial assets , it ’ s very difficult for banks , with their legacy technologies , branch infrastructure and cash handling to serve these kinds of customers well ,” he said . “ The time is right for new disruptive digital models that have substantially lower cost structures to enter the market and serve these customers — the fact that our businesses are getting so much traction shows the demand exists .”
Varo , as Walsh told the Money20 / 20 audience , was built around the premise of “ banking that ’ s not a system of haves and have nots , but a place where everyone can succeed ”. The brand innovates in the areas that it believes are most important to its customers , focusing on financial health , how to make money work harder , offering a no-fee overdraft and ensuring an effective balance between innovative technology and human interaction .
Elaborating on the same theme , Erwin said that banks are “ trapped within their own legacy systems ”, making it difficult for them to work in the same way as the newer generation of financial services companies . Britt too recognised innovation as a differentiating factor , citing the relative ease with which younger , digitally-savvy entrepreneurs can build a business
JANUARY 2020