The current retail banking market | UK retail banking ft. Sarah Kocianski
3.6 هزار بار بازدید -
4 سال پیش
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What different types of banks
What different types of banks exist in the UK retail banking market? Sarah Kocianski, our 11:FS Head of Research, takes us through the landscape and the key differences between these financial services providers.
Customer numbers are currently dominated by the 'big banks', but these legacy banks have more competition than ever before. Their systems are still holding them back from innovating at speed, and customer expectations are shifting dramatically.
And then you have the challenger banks, such as TSB and Santander, who are also well-recognised brands. They have fewer customers and have existed for considerably less time than the aforementioned big banks, and by-and-large usually have the same issues with legacy systems as the big banks.
But what about Digital Banks such as Monzo or Starling? They have banking licenses and are as safe as the big banks, and the challenger banks, as far as the regulators are concerned. They built their systems from the ground up with the modern world and customer in mind. They're more agile and can innovate at speed and keep on top of what their customers want, and can change quickly in accordance with that. And they're digital, and with no branches, they have less running costs. These brands are doing well and have great customer satisfaction - but they're brand-new and have a long way to go in terms of product differentiation.
The final group are the non-banks. These are Financial Services providers that look, and act like banks - but aren't. They typically run on an emoney license (such as Revolut) but have a lot of customers. Many of those customers aren't concerned about whether they are 'banking' with an actual bank by regulatory standards. These providers tend to have more products than Digital Banks, but without a banking license, they are considerably limited when it comes to making money. They aren't allowed to hold or lend money - only move it. So the big question for these non-banks is whether they will be able to make enough revenue to survive in a climate that has so many other players.
Watch more in Sarah's UK retail banking series.
How Banks Make Money: • How banks make money | UK retail bank...
The 2008 financial crisis: • The 2008 financial crisis | UK retail...
How the financial crisis changed banking: • How the financial crisis changed bank...
4 سال پیش
در تاریخ 1399/07/28 منتشر شده
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