Former Lloyds Bank director Alessandro Hatami explains what he thinks digital banks need to do next and feels that the so called neobanks are not doing the right thing.
He opined that there are three things banking customers fundamentally need — and are worth disrupting to look like in ‘The Ideal Neobank’:
1. A Payment Account: Imagine a bank that allows you to seamlessly pay anyone, anywhere: be it your babysitter, your favourite retailer or a holiday home abroad.
2. A Credit Line: Instead of an overdraft, personal loan, credit card, car finance or a mortgage you get a credit line. The bank knows you and will advance cash (with guarantees if required) as you need it. You make one payment a month — like a subscription — to pay for it.
3. A Savings/Protection Tool: You have some excess capital and the bank enables you to buy any product in the market that allows you to protect and grow it. And your bank would sell you any such product in the market that meets your needs — whether or not it’s their product or a third party’s.
Many banks and fintechs claim they already offer this, but he is not sure their customers agree. These neobanks still sell financial products rather than financial solutions.
Read on
We're still a long way from the perfect digital bank | Sifted
Over the last decade, so-called "challenger" banks like Monzo, Starling and Revolut have served as beacons of opportunity, promising a new way of banking. This has prompted their predecessors - the incumbents - to undergo several phases of digital transformation; something I watched first-hand when I was a digital exec at Lloyds Bank.
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