UK Bankers are Afraid of Crypto-Induced Disruption as per Latest MoneyLive Report
According to a brand new report released in relation to the UK banking industry, it appears as though many established financial institutions (within the region) view Fintech startups as a threat to their existing customer market.
The report was released by MoneyLive Banking in conjunction with Marketforce. It took into consideration the opinions of over 600 established members of the British financial sector. According to the report, it is clear that Britain’s banking space sees crypto oriented startups as a “significant threat” to their current business models.
It is worth pointing out that the case study was originally designed to simply find out how traditional financial institutions viewed the growing fintech market (and how it would affect their future business operations).
More About The Report
As per data presented in the aforementioned study, more than 80 percent of the respondents claimed that “customer experience and service quality” are the two biggest factors driving ‘consumer acquisition and retention’ for established institutional brands. However, it now appears as though 79% of the executives who were interviewed believe that upcoming fintech startups not only have better long-term biz models but also possess more brand appeal.
Also, quite unsurprisingly, only 59 percent of the interviewees agreed that customer-facing fintechs have the “potential to replace or even pose a significant threat” to established financial players present in the market today.
On the matter, an excerpt from the aforementioned case study reads:
“Almost six out of ten (59 per cent) of the bankers we surveyed perceive new intermediaries to be a significant threat to their relationship with their customers…From Amazon to Airbnb, Netflix to Uber, the story of digital disruption has not ended well for those incumbents unable to match the personalised experience and compelling cost savings of the newcomers.”
Other Statistical Data Worth Considering
- 71% of the respondents agreed that when it came to brand publicity and market outreach, a majority of big banking players have not been able to kept pace with upcoming fintech firms.
- According to the report, there is currently no consensus regarding the fate of banking services as soon as the ongoing fintech revolution achieves its ‘projected critical mass.’
- 31% of the interviewees expect challenger banks to benefit the most from this ongoing wave of digital disruption.
While many banking giants still believe that fintech startups will eventually start to peter out after they reach their “critical mass of majority usage”, it will be interesting to see how the future of the European market plays out from here on out.