How Digital Banking Can Protect Against Big Tech Invasion

Retail banking is being attacked by both small fintech firms as well as the big tech giants like Google, Amazon, Facebook, Apple and others. The best defense that traditional financial institutions can use against this invasion is a strong, personalized digital banking offense. Modest-sized fintech firms and large tech giants continue to make retail banking inroads worldwide, providing services that leverage the best in digital technology to deliver a customer experience that removes cumbersome steps from both routine and more involved banking engagements. Relative financial newcomers like AliPay (China), WeChat (China), Rakuten (Japan), Atom (UK), Monzo (UK), Starling (UK), N26 (Germany) and Revolut (UK) have joined household names like PayPal, Amazon and Google to disrupt the banking ecosystem, leveraging modern infrastructures and innovative cultures. According to Bain, "Many of the tech giants possess the ingredients of success: digital prowess, large customer bases, organizations well versed in improving the customer experience, and ample leeway to extend their corporate brands into banking." More concerning may be that some of these firms are generating a level of trust previously reserved only for traditional banks and credit unions.