The January 2016 Global best practice report focuses on one of the most important issues facing the banking industry - the emergence of the challenger brands. Financial Technology companies (FinTech) and non-bank institutions are emerging with the potential to disrupt the traditional banking landscape. The potential and growth of these new players means that banks cannot afford to ignore the threat they pose to market share, across the whole spectrum of banking products.
This report assesses the challenger brands by analyzing their successes, features, structure, and reception across three key areas:
Firstly, identifying the challengers - this involves providing an understanding of exactly who these challengers are, from where they have come, and the areas of the banking industry upon which they will have the biggest impact.
Secondly, understanding best practice among challengers. In order to fully appreciate the role of challengers, it is necessary to include an in-depth review of the best performing challengers globally, highlighting key examples and case studies of their success. This includes examples of best practice in mobile banking, wealth management and investment, personal and small business peer-to-peer lending and the unsecured loan market.
The final section of the report covers the best lines of defence for banks against the threat of non-bank challengers. This involves understanding the importance of whether or not banks choose to partner with, compete against, or acquire challenger institutions and providing examples of how banks have reacted, including:
- Bank led innovations in the digital banking space
- Emerging strategic alliances and partnerships between challengers and banks, and the possibility for mutual benefit
- The leverage of structural advantages, such as:
- Their branch and ATMs networks
- Their foothold in traditional transactional accounts
Case studies were taken from the USA, Canada, Australia, UK, China, France, New Zealand, Singapore, and Hong Kong, and data from research into 21 countries globally.
As retail banks around the world face challenges to their profitability from emerging FinTech brands, physical networks, strategic partnerships, acquisitions and transactional banking will serve as the first lines of defence. Readers of this report will benefit by gaining a global understanding of the impact of FinTech’s and challenger brands and the success of their products, which in turn will help guide strategic initiatives, product design and targeted offers. Furthermore this report allows readers to benchmark their institutions against global competitors on digital banking, product offerings and strategy.
Features and benefits
- Provides global comparisons of mobile and digital banking uptake, usage and behaviors
- Demonstrates customer appetite for the use of challenger banking solutions versus the incumbent banks using country specific consumer data
- Trended market share data that demonstrates successful challenger entry into the banking industry
- Analyses gaps in the market that challenger brands have successfully targeted
- Highlights the advantages and disadvantages of banks against challenger brands and vice versa
- Builds understanding of product holdings and uptake among different age groups, using global data
Key Questions Answered
- Who are the top performers globally in the mobile and digital banking space among banks and challengers?
- In what areas are the banks and challengers performing well?
- What can banks do to defend against challenger brands?