Challenger bank assets quadrupled from 2017 to 2020. Nearly half of the total 2020 challenger bank assets were held by the 20 on the list having banking licenses. Revenue from these banks comes primarily from payments and/or lending. Despite their low-cost structure, many are still struggling to become profitable overall.
Bank of America’s digital banking statistics are beyond impressive! They are setting a very high bar for the digital customer experience that will be challenging for most other companies to reach. But there’s no question that driving digital engagement and automating processes will be keys to survival.
Open banking has become a ‘thing’ that is harder and harder to ignore. Frost Bank in Texas has taken the first step in the open banking world by adopting data aggregator Plaid’s API-based platform. Frost’s customers are now able to see accounts held at other institutions and register other Fintech-provided services using a much more secure technology than the old ‘screen scraping’ approach. They can easily enable and manage connections to those other financial services providers within the Frost mobile app.
“What’s in your wallet?” In addition to an iconic slogan, Capital One plans to grow the company using its strengths in digital channels rather than through acquisitions. Partnerships are key to its strategy on the technology side. But they also extend innovation to areas outside of tech, such as their pioneering move to eliminate overdraft fees.
Having a good slogan or tagline can help your company stand out from the crowd. “The best slogans are unique, relevant, credible, and memorable. Other than that, there are no rules.” What matters most is that it represents your brand values, and your company is committed to living up to them.
Five technologies that financial institutions should be discussing include use of application programming interfaces (APIs), robotic process automation (RPA), artificial intelligence (AI), distributed ledger technologies (DLTs), and the use of cloud computing (sorry, no abbreviation for this one …).
PayPal is more than just a payments and merchant services behemoth. Their super app also includes features such as a high yield savings account, BNPL, and the ability to buy/sell/hold cryptocurrencies. Plus they own Venmo. Traditional bankers – how well are you sleeping these days?
