A new report has emerged in the latest crypto news, showing that the UK banking industry is ‘under threat’ of being disrupted by fintech startups. Issued by MoneyLive, the Banking Report was compiled by Marketforce LIVE and sums up the fact that Britain’s banking space sees such startups as “significant threat” to their business models.
After taking more than 600 prominent figures into account, the report polled respondents in an attempt to find out how traditional financial institutions view the prevalence of services provided by fintech companies in relation to their existing customer base and their future business prospects.
The data presented shows that 81% of the respondents think that customer experience and service quality are the major drivers of consumer acquisition and retention than trust in the institutional brands.
On top of this, 59% of the respondents agreed that customer-centric fintechs have a potential to replace the British banks and 79% of them are sure that they have “more engaging brands.”
As an excerpt from the report reads:
“Almost six out of ten (59 per cent) of the bankers we surveyed perceive new intermediaries to be a significant threat to their relationship with their customers…From Amazon to Airbnb, Netflix to Uber, the story of digital disruption has not ended well for those incumbents unable to match the personalised experience and compelling cost savings of the newcomers.”
In the meantime, UK banks expect that fintech adoption will continue to race towards a critical mass of majority usage. The key fact that more than 93% of the respondents agreed upon was that over the next five years, the banking business and revenue models will have to undergo fundamental changes if they are to survive and co-exist with fintechs.
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