The Bank of England reports that banks could be underestimating the risks to their operations and profitability due to the rise of fintech startups. They predict fintechs will eventually reduce banks’ overdraft revenue, increase liquidity risks, reduce payment service fee income, increase customers switching accounts, and make it less likely for lenders to attract customers.
Overall the BoE believes the competitive impact of fintechs can be as much as £1bn in profitability losses.
But, implementation of disruptive tech, into the normative banking environment, is nothing new. The ATM is one of the best examples, where people no longer needed to visit their local bank to withdraw cash. Now, apps & digital wallets are quickly becoming the preferred point of contact between customers and banks. Similar to the introduction of ATMs, fintechs are providing companies with a variety of opportunities to solve inefficiencies that consumers prefer to avoid.
The Collabor8 Club exists to provide a platform for the future way of banking. A future where banks and fintechs are no longer in competition, but instead, develop strategic, collaborative partnerships that use their mutual skills to better serve the needs of their customers.
CoBa is focused on supporting the growth of fintechs with a low risk, high return collaboration strategy. The Collabor8 Club offers its members a local and international community for collaboration, innovation, networking and investment, leading to exponential growth.
For more information on how to become a member of The Collabor8 Club, or be involved in a new collaboration movement, follow this link: http://www.wearecoba.com/collabor8club/