Salisbury recently published a post in which he attacked traditional banks:
The same Jamie Dimon, CEO of JPMorgan Chase, one of the largest banks in the world, who is quoted by Salisbury, referred very recently in a conversation with his board members to the possible competition with technology and fintech giants: “We have plenty of resources, a lot of very smart people. We've just got to get quicker, better, faster. We've done a good job, but the other people have done a good job, too”.
Link to full article on Damon's message to management.
The traditional banking system has felt very secure in recent years and has not faced a real threat to its hegemony, until recently. Neobanks around the world are gaining customers and market shares, backed by reforms like bank-to-bank mobility and open banking. One of the great advantages of neobanks is the ability to get core computing system from big players like TCS from India instead of setting it up themselves from scratch, which involves very high costs. The ability of new banking methods to become Banking as a Service alongside the simplicity of transitions between banks and the use of open banking; customers understanding that their financial information actually belongs to them, and they can use it to improve their financial performance and enjoy competitive alternatives – all of these create a bang that is likely to shake basic conventions in the banking industry.
It was reported just recently that the British Starling Bank founded by Anne Bowden has completed a $ 376 million fundraiser at a value of $ 1.9 billion.
Link to an article about Starling's endeavor.
The bank recently moved to the lanes of profitability – significant news for new players in the financial neighborhood, which launched a new slogan under the hashtag: #BreakUpWithYourBank aiming to become their customers’ primary and first account.
The big banks do have huge resources, but are having a hard time dealing with the new tsunami where customers are voting with their feet and moving to new players who are building new relationships with them. As long as there was no alternative and the big players maintained a kind of status quo, there was no real reason to switch between banks. As soon as competition and an alternative entered, the equilibrium was disturbed.
First Digital Bank also aim to use the regulatory backing and important reforms it brings to revolutionize the banking system in Israel.
Get ready to break up with your bank.