DIGITAL MIGRATION
MOBILE BANKING
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“ [ MILLENIALS ] HAVE EXTENSIVE FIRST-HAND EXPERIENCE OF WHAT WORKS WELL AND WHAT DOES NOT IN THEIR EXISTING BANKING SET UP ”
— Aman Behzad , Managing Partner , Royal Park Partners
But in truth , the tide was already beginning to turn .
DIGITAL MIGRATION
Where incumbent banks benefit from perceptions of stability and trust , excel at offering broad services , access to deep wells of credit and regulatorapproved lending , they also suffer from a systemic image problem : that they offer poor customer service and clunky processes .
In the third quarter of 2020 , an influx of new account openings on mobile banking platforms hit some incumbents hard . “ The reason for switching ? Improved online banking facilities ( 47 %), preferable mobile banking systems ( 39 %) and better customer service ( 37 %),” says Teodor Blidarus , Founder , Fintech OS . “ These are all customer experience reasons – nothing to do with products or financial terms .”
The trend shows customers are placing a premium on convenience . They consider digital banks as intuitive and user-friendly portals for handling payments , deposits and withdrawals , and other quotidian personal finance tasks . Neobanks segue neatly into our ever more digital day-to-day lives , but they are still playing catch up when it comes to mortgages and other major finance functions .
This is most evident in millenials , the former catch-all for young ‘ digital
JANUARY 2021