Small financial institutions entice customers by removing fees
Implications - Emerging banking institutions are playing off of consumers' growing mistrust of large banks by getting rid of the dreaded fees associated with spending and transferring money. This shift further distinguishes these startups from their larger competitors, and brings in on-the-fence consumers who may otherwise be weary of putting their money into less established businesses.
Workshop Question - How can your brand deepen trust between itself and its customers?
Trend Themes
1. No-fee Banking - Small banks and startups are removing fees to entice customers and differentiate themselves from larger competitors, and custom scoring systems using banking data are used to provide credit to people with no or bad credit scores.
2. Simplified Banking - Smaller banks and startups are leveraging new tech innovations to simplify banking and compete with larger financial institutions.
3. Encrypted Chat Cryptocurrencies - Encrypted communication apps are launching their own chat cryptocurrencies to facilitate payments and avoid remittance fees.
Industry Implications
1. Fintech - The financial technology industry is leading the way in developing and adopting disruptive innovations like no-fee banking, simplified banking, and cryptocurrency payments.
2. Credit Services - Credit service companies can create new opportunities to serve those with no or bad credit scores by utilizing custom scoring systems based on banking data, removing fees, and offering alternative cards that don't rely on a credit score.
3. Encrypted Communication - Businesses within the encrypted communication industry can leverage their existing infrastructure to create chat-based cryptocurrencies and offer a more independent and secure experience for their users.
