Consumers embrace non-traditional banking services
Implications - Unconventional financial services marketed on targeting groups of consumers underserved by traditional banking have begun to emerge. Taking inspiration from a variety of related sectors and even the sharing economy, such experimental banking concepts highlight a need for diversity in an industry known for its strict practices. This progression speaks to the desire on the part of consumers to patronize services that take into account the value of each customers needs, rather than being viewed in relation to the bottom line.
Workshop Question - What aspects of your industry are ripe for an update?
Trend Themes
1. Unconventional Financial Services - Unconventional financial services have begun to emerge, taking inspiration from a variety of related sectors and even the sharing economy, this progression speaks to the desire on the part of consumers to patronize services that take into account the value of each customer's needs, rather than being viewed in relation to the bottom line.
2. Digital-only Banks - Focusing exclusively on the online experience, digital-only banks such as Atom hope to make mobile banking more convenient and accessible.
3. Small Business Lending Platforms - New digital lending platforms such as Lendified take the onus off of human resources by utilizing a powerful algorithm to get a small business owner's "LendScore", offering the same services better, faster, and sometimes cheaper than larger institutions.
Industry Implications
1. Financial Services - The financial services sector is experiencing a range of disruptions affecting traditional banking, opening the door to new and unconventional financial service providers.
2. Technology - Technological advancements have enabled new entrants to capitalize on the gaps in traditional banking services, resulting in faster, more efficient and more reliable services.
3. Start-ups - Start-up culture is providing financial ventures with a significant advantage over larger institutions, enabling these new companies to offer the same services better, faster, and at times cheaper.
