Are Banks Evolving into the FinTech Era or not Yet?
Jamie Dimon is a very known figure in the financial world and the cryptocurrency space. Since the very beginning he has been working in order to attack bitcoin and cryptocurrencies for different reasons.
Some years ago, Mr. Dimon said that Bitcoin developers are trying to ‘eat’ banker’s launch and that silicon valley was coming for them. The situation did not change that much. Banks are still profitable, and virtual currencies are not yet massive.
Indeed, banks are getting bigger and are trying to implement blockchain technology to improve their services and products. According to the mobile data analytics company Ogury, Halifax, Santander, lloyds and Barclays are the most used apps among British consumers.
But it is important to mark that if we take into account the number of users of Halifax and lloyds – which are part of the same company – we find that over a third of the apps used are from lloyds Banking Group.
However, we can mention some important things here. Users tend to open their banking applications more times a day than the fintech apps. Why? Simply because fintech offer a much better service than banking applications. Bank apps do not notify the user when it receives a new deposit, while fintech companies have developed great software pieces that notify the user if a payment has been made or if it has received a new transfer.
The Financial Times Says About This Situation:
“Top of the fintech is established payments unicorn TransferWise, with just 0.5 per cent of the visitor share in the most recent week. Revolut, which recently announced it had signed up 1 million UK users, has just 0.3percent of the market share, while Starling Bank has 0.2 per cent.”
Interestingly, traditional banks even dominate the new app download list. Starling is able to reach the top 10 with just 4.6 per cent of the downloads. But those applications and start-ups with the most traffic however, are those that allow individuals to exchange money. We can mention TransferWise, World Remit, Skrill and Fair FX.
The most important player here is TransferWise, which registers the best performance in most of the countries with the exception of Italy where it was placed third. In the last years, the number of individuals travelling and moving abroad has grown, so this is not a very surprising thing.
Banks are taking too long to send transfers abroad, and are becoming increasingly expensive. Instead, TransferWise is able to make transfers in under 24 hours and with much less fees than any other traditional methods.
In the future, more people will start to use new services, faster and more reliable than current banking systems. Speed, reliability, low cost transactions and an easy to use app will help the new fintech startups take over banks in the financial world.