Fintech’s Speed Advantage over Legacy Banks

Note from the CEO: Ha Ha Ha, you can’t catch us! Well at least that’s the attitude of the new fintech banks (challegers as it were) to the BIG monolith established banks. Too big and structured to adapt (and the new startups are quick and nimble) for the likes of Bank of America, Lloyds, etc. Like fast speedboats zipping around an oil tanker. Problem….name recognition and trust (if banks and trust go in one sentence). Hello startups, can you say “ be acquired”?

‘One of the greatest challenges for fintech startups, more so than in other tech verticals, is the need to win consumers’ trust.

But with the 2008 financial crisis creating a widespread public distrust of established banks, fintech entrepreneurs such as Starling Bank CEO and co-founder Anne Boden saw the perfect opportunity to deliver a banking experience more in-line with the expectations of digital-savvy, mobile first consumers.

Speaking to FinTech Global Boden said, “Post-financial crisis, I came to the realisation that financial services hadn’t really change but customer expectations had. There was a whole new scrutiny on financial services.

“I started my career in Lloyds Banks in the early 1980’s but hardly anything changed in that time. The big banks added some channels, and we moved from branch to phone to internet to mobile, but the product – the model – didn’t change.”

It’s a sentiment echoed by wealth management-focused challenger bank MeDirect’s founder Xavier De Pauw, who said, “We saw that people’s trust in the existing financial services companies and banks had been dented.

“So we create a simple and transparent bank with a client-centric approach in 2009.”’

Read Full Article at FintechRoundup