Don’t be too blasé about people loving Fintech
I find it interesting as we move towards Open Banking and Open APIs through regulations at both the UK and EU levels, that the push is for data sharing with trusted third parties with user consent. All well and good, you would think, but several surveys point to it not being quite so rosy.
People who say they would never use mobile payments are happy to have Apple in-app purchases on their phone, or pay by credit card for their Uber rides. These are mobile payments, but they just don’t see it this way.However, there is a serious point to this, which is that (some) consumers are really nervous about money and wouldn’t enjoy their bank exposing them to risk. This is why some don’t even use online banking, let alone mobile banking. For example, in the UK, Lloyds, Barclays and the Royal Bank of Scotland (RBS) have around 8 million, 5.7 million, and 4.2 million mobile banking customers each, respectively. However, between them, they serve almost 80 million accounts and so of that 80 million, the 18 million mobile banking customers is approximately just 25% of the customer base. This means that 75% of UK consumers still don’t trust mobile banking, even though it’s been around over five years. The first mobile banking app was launched by Barclays in 2012 . Even more notably, a third of UK bank customers don’t even use online banking today. What I often feel is that the technologists believe far more in banking technologies than the users. Yes, there is a large crowd of people who like the fintech start-ups such as TransferWise, Atom and Monzo. But there are a far larger crowd of people who don’t, and it’ll take time to educate them to change before they do. This is why it is imperative for financial pundits to show people the benefits and incentives for switching to new technologies and trusted third parties, rather than just sitting and waiting. Rolling out new apps is all well and good, but if the majority of customers miss the point, then things will stay the same.
Technologists believe far more in banking technologies than the users...Rolling out new apps is all well and good, but if the majority of customers miss the point, then things will stay the same.Chris Skinner is a Non-executive Director at 11:FS. To find out more about 11:FS and how we can help banks compete with fintechs and become truly digital, check out our Services page, or email us at firstname.lastname@example.org, or listen to our podcast Fintech Insider, where Chris Skinner is a guest host.