FinTech Start-ups Shake up Banking Industry
By Cameron Abbott and Meg Aitken
Tech start-ups are infiltrating the finance sector at a rapid rate, and customers love it. Changing consumer expectations and behaviours are forcing traditional banks to lower costs, be more efficient and provide better security in order to remain competitive.
In a study recently conducted by TransferWise, a UK based fintech that offers peer-to-peer money transfer services that avoid currency conversion costs by redirecting payments and innovatively routing transfers, consumers were asked about their current banking behaviours and predictions for the future. Results suggest the financial landscape will be virtually unrecognisable a decade from now. Looking ahead 5 years’ time, nearly half of the consumers surveyed expected to be using an alternative technology provider in some capacity for financial services, and 10 years down the track, 20% anticipate using fintech providers exclusively.
As part of the research, TransferWise asked consumers what would encourage them to use a fintech alternative for a service that they would traditionally use their bank for. Results revealed that increased security, lower cost, greater convenience, improved efficiency and better customer service were the key features that are luring customers away from their everyday banks.
In many industries innovators struggle to get the attention of consumers, but it appears in financial services consumers are looking forward to new ways of transacting.
Read the full TransferWise report here.