FUTURE OF FINANCIAL SERVICES
However , Kin + Carta Europe ’ s Financial Services Director Phillip O ’ Neil expects the competition to be fiercer in 2024 . “ There will be a reckoning between competition , partnership and acquisition ,” he notes .
“ I anticipate we ’ ll see digital banks like Monzo and neobanks like Revolut continue to build out their product set to compete with legacy banks . And legacy banks will continue to play catch up to fintechs , investing in their product features and enabling customers to manage their money better .
“ 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 .
“ 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
106 January 2024