Finally! The mobile banking apps cropped up like crazy past two years, and now they all have raised significant investments and are changing the banking industry as we know it.
When you say a bank, you probably imagine the Natwest, Barclays, HSBC and other high street banks. They have been here for a very long time, and that’s what we think a bank should be. But have you always been happy with your bank and did you get most out of it?
Well, few different startups would beg to differ. They combine financial services and technology into a new banking concept. We call this portion of a rapidly emerging industry as FinTech. These startups worked very hard for the past few years to change already established industry into something more approachable, transparent, useful and one hundred per cent focused on the actual user, very unlike traditional banks.
In contrary to what some other media agencies say, we fully support the British innovation and the desire to shake up old and domesticated banking market. We applaud those industry disruptors like Monzo, Starling Bank, Tide Business Banking, Monese, Atom Bank and others.
There is no doubt, a long way is still ahead and many summits to be conquered, but it is a positive change. British public still needs to be persuaded by these newcomers.
Starling Bank received £60m grant and created 400 new jobs, Tide Business Banking received over £100m funding s and signed up 5,000 UK businesses in January alone. Monese Bank bank just added Avios loyalty platform to their app and acquired bank license.
The customer acquisition is speeding up, and new features like Apple Pay are luring in even more mobile users. Evaluations of these startups are rapidly increasing, and investors want the slice of the very lucrative British banking market.
Many are offering Euro accounts which are in high demand with Brexit looming. It looks like conditions were just right for open banks to pop up, times are indeed changing.
It is predicted that 35m people, or 72 per cent of the UK adult population, will be managing their current accounts via their phones by 2023.