Chapter 5. The Financial Disruptors
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Abstract
New fintech entrants are moving rapidly into traditional areas of banking as they expand their customer base. Examples of companies making these moves include Google, offering a debit card to go with its mobile wallet service; telecommunications providers T-Mobile in the US, Rogers in Canada, Airtel in India, and SingTel in Singapore, all of which have rolled out similar mobile wallet services; and Walmart and American Express, which attracted over one million customers with Bluebird, a pre-paid card offering a low-cost alternative to checking account services in the United States. Platforms such as Apple’s iPhone already provide seamless and secure mobile financial services to hundreds of millions of customers though Apple Pay. Though many of the new entrants lack the scale to pose an immediate threat to traditional retail banks, these changes could come swiftly due to the continued increase in technological advancements. Many established retail banks are waking up to the impending threat that technology companies pose. One retail bank survey indicated this growing concern (see Figure 5.1). It hasn’t just been the larger players influencing the industry. Smaller and medium- sized disruptive financial start-ups are also experiencing success and rapid growth. One such example is Square, a point-of-sale payment-processing venture that has accumulated over 7 million monthly users (as of December, 2018).1 Whether large or small, the already mentioned fintech companies have contributed enormously to the development of new innovative technologies within the global financial industry, all of which has laid the groundwork for major disruption and the current retail banking revolution.
Abstract
New fintech entrants are moving rapidly into traditional areas of banking as they expand their customer base. Examples of companies making these moves include Google, offering a debit card to go with its mobile wallet service; telecommunications providers T-Mobile in the US, Rogers in Canada, Airtel in India, and SingTel in Singapore, all of which have rolled out similar mobile wallet services; and Walmart and American Express, which attracted over one million customers with Bluebird, a pre-paid card offering a low-cost alternative to checking account services in the United States. Platforms such as Apple’s iPhone already provide seamless and secure mobile financial services to hundreds of millions of customers though Apple Pay. Though many of the new entrants lack the scale to pose an immediate threat to traditional retail banks, these changes could come swiftly due to the continued increase in technological advancements. Many established retail banks are waking up to the impending threat that technology companies pose. One retail bank survey indicated this growing concern (see Figure 5.1). It hasn’t just been the larger players influencing the industry. Smaller and medium- sized disruptive financial start-ups are also experiencing success and rapid growth. One such example is Square, a point-of-sale payment-processing venture that has accumulated over 7 million monthly users (as of December, 2018).1 Whether large or small, the already mentioned fintech companies have contributed enormously to the development of new innovative technologies within the global financial industry, all of which has laid the groundwork for major disruption and the current retail banking revolution.
Chapters in this book
- Frontmatter I
- Praise for the Book VII
- Foreword IX
- Contents XI
- About the Authors XV
- Chapter 1. Introduction 1
- Chapter 2. Overview of Banking 9
- Chapter 3. An Imperfect System: Financial Crises 19
- Chapter 4. Rapid Transformation 27
- Chapter 5. The Financial Disruptors 33
- Chapter 6. The Digital Financial Revolution 47
- Chapter 7. A New Era of Banking 57
- Chapter 8. International Financial Innovations 73
- Chapter 9. A Digital Blueprint for Banks 87
- Chapter 10. Human Resources in the Digital Era 93
- Chapter 11. The Future of Banking 95
- List of Sources 99
- Thank you 117
- Index 119
Chapters in this book
- Frontmatter I
- Praise for the Book VII
- Foreword IX
- Contents XI
- About the Authors XV
- Chapter 1. Introduction 1
- Chapter 2. Overview of Banking 9
- Chapter 3. An Imperfect System: Financial Crises 19
- Chapter 4. Rapid Transformation 27
- Chapter 5. The Financial Disruptors 33
- Chapter 6. The Digital Financial Revolution 47
- Chapter 7. A New Era of Banking 57
- Chapter 8. International Financial Innovations 73
- Chapter 9. A Digital Blueprint for Banks 87
- Chapter 10. Human Resources in the Digital Era 93
- Chapter 11. The Future of Banking 95
- List of Sources 99
- Thank you 117
- Index 119
