Rethinking the Customer Experience: Themes from the 2017 Model Bank Submissions

This is the third article in a weekly series highlighting trends and themes from Celent’s Model Bank submission process. Dan Latimore and Zil Bareisis led off with two great pieces on the evolution of the Model Bank Awards.  Articles from this week on will explore some of the broader themes within each category. Customer experience initiatives are typically the most numerous.  While this makes the category more difficult to judge, it offers immense insight into what’s happening in the market. The standards of customer engagement are constantly changing, and banks are experimenting with new ways to drive increased satisfaction, higher revenue, and greater loyalty.  Three themes stand out this year. Digital banking subsidiaries: Many banks are finding that existing systems are too rigid to accommodate a truly digital experience.  A number of customer experience submissions this year focus on building out separate digital subsidiary brands within traditional institutions. Banks are typically going in two different directions.  The first is a digital subsidiary as an offshoot of the parent bank.  These brands are basically separate products that offer a digital-first experience to a certain demographic, but are closely tied to the main bank. Brands are similar and products/ services are frequently cross-sold. The second type is a completely separate brand ring-fenced under a different technology stack, operating under the umbrella of the parent organization but effectively a separate entity.  These banks may leverage the parent for product support, but are usually sandboxes for “testing” digital.  Submissions were a mix of the two approaches. Fintech partnerships: The shift from disruptive to collaborative relationships between financial services and Fintech startups feature prominently in this year’s award submissions.   They range from standard B2B vendor relationships to more advanced functional partnerships where portions of the Fintech’s offering is exposed within the traditional institutions digital UI.  Initiatives reflect the growing acceptance among the industry that banks can’t be all things to all people.  Institutions are acknowledging the valuable and complementary role Fintech can play in providing a modern, innovative customer experience. AI and bot technology: Bursting out of the gate in 2015/16, Banks have begun a mad dash towards AI and other bot technologies.  This is a broad spectrum of projects that include everything from simple bots to cognitive computing.  Submissions this year show institutions spreading their resources across many different applications.  Like any emerging technology, most institutions are in a “test and learn” phase.   These technologies are at varying levels of maturity, but the potential to revolutionize the customer experience through AI may be truly transformational, and Celent was pleased to see so many projects in this space. This is just a taste of what we’ll have in store at the 10th annual Innovation and Insight Day on April 4th in Boston. We’ll be diving much deeper into the various topics, revealing the winners of all the awards, and discussing how they combined serious innovation with tangible business benefits to stand out from so many strong contenders. I look forward to seeing you all there.

Chat Bots: Savior or Disintermediator?

AI is becoming increasingly interesting to bankers.  Last year I wrote a blog about “Assistant as an App”, looking at how concierge apps like MaiKai and Penny are offering up AI-driven financial management services.  My colleague Dan Latimore also recently posted a blog on  AI and its impact.

The emergence of chat bots within popular messaging apps like Facebook Messenger, Slack, Kik, and WeChat similarly has the potential to shift how customers interact with financial institutions. Chat bots offer incredible scale at a pretty cheap price, making adoption potentially explosive. Facebook messenger, for example, has almost one billion active users per month. WhatsApp (soon to launch chat bots) has about the same.  These apps offer some extremely high engagement, and with app downloads decreasing, users are spending more time on fewer apps. According to Tech Crunch, 80% of the time spent on a mobile device is typically split between 3 to 5 apps

Chat bots give the bank the ability to automatically appear in almost all of the most used apps in the world.  The opportunity with digital assistants is immense, and given the nature of bank transactions, it’s not hard to imagine chat bots becoming a widely used engagement method.  Most of banking is heavily rules-based, so the processes are often standard.  Frequent banking requests are pretty straightforward (e.g. ‘send this person X amount of money’ or ‘transfer x amount from savings to checking’).  Bank-owned chat bots are also more built for purpose than some of the multi-purpose third-party products on the market, making the functional scope targetted. While chat bots are still very early days, it won't be long before these kinds of interactions are accessible and the norm. Bank of America already has one; many others have plans or pilots.

This video (skip to 7:30) shows what an advanced chat bot might be able to accomplish. The image below from the Chat Bot Magazine is another conceptual banking use case.  The possibilities are compelling. 

 

 

 

 

But while the opportunity with digital assistants is enormous, banks must be aware of how this affects their current ongoing digital strategy. For example, if chat bots overcome the hype and become a long lasting method for accessing financial services, then what effect will that have on traditional banking apps?  Will chat bots make it foolish to invest large sums of money in dedicated mobile apps? 

For all the promise this technology brings, banks need to be aware that this could be a step towards front-end disintermediation. The threat of tech companies (or other large retailers) stepping in to grab banking licenses and compete directly with incumbents was short lived.  The more realistic scenario was always relegating core banking functions to a utility on the backend of a slickly designed user interface created by a fintech startup.  The incumbents lose the engagement, even if they are facilitating the transactions.

Are chat bots a step towards front-end disintermediation, or are they an extension of the bank’s main app?  If you believe that chat bots are a stepping stone (or companion product) towards a world where the best UI is no UI, and where AI evolves to the point of offering significant functional value, then banks could be at risk.

This isn’t a call to hysteria by any means, nor am I calling chat bots wolves in sheep’s clothing, but banks need to be aware of the potential impact. As voice or message-based interactions become the norm, they will have an effect on a bank’s dedicated mobile app.  In this environment, the mobile app will need to evolve to become something different; non-transactional.

Chatbots will only further fragment the customer journey, requiring an even clearer understanding of how consumers are choosing to handle their finances and make transactions. Banks need to start thinking about how chat bots and AI fit into a long-term digital channels strategy, one that doesn’t handcuff the institution into a no-win proposition of competitive disadvantage versus wilful disruption.

The Mobile Banking and Payments Summit – Impressions from Day 2

A couple weeks ago I attended the Mobile Banking and Payments Summit in NYC for the first time.  There was an impressive list of experts from institutions such as JPMC, Barclays, Citibank, BNP Paribas, the Federal Reserve, USAA, Capital One, BBVA, and Moven, among others. I was only able to attend the final day, but it didn’t disappoint.  The day focused mostly on mobile wallets, with a few main points shared below:

  • Mobile wallets have been challenged by industry barriers:  The old rule of thumb with a payments scheme is that it needs to please three parties: the merchant, the bank, and the consumer.  These products and solutions have traditionally fallen short of one or more of these objectives, essentially stalling a lot of the progress.
    • There’s still plenty of fragmentation in the market:  Android is an open system utilizing Host Card Emulation (HCE), while Apple is a closed system using a secure element.  There are others beyond that, but it’s largely contributed to a lack of standardization and unimpressive overall adoption.  We know this is largely understood by banks and merchants, and many are willing to play along for the time being.
    • Consumers can misunderstand mobile wallets: Many users of Apple Pay, for example, have a poor understanding of how the system actually works, with many assuming Apple is in control of their card details.  While the system is safer than traditional cards, the perception that it’s less safe is keeping many users from adopting it.
    • Getting the marketing right is tough: Often, the mobile wallet really isn’t about the payment so much as the experience around the payment.  It might be easier or there might be a whole host of incentives like rewards wrapped around it.  The potential is there, but until recently the market hasn’t been.
  • But many barriers are beginning to fall away, and there’s hope for adoption: For years, the industry has been declaring that FINALLY this year will be the year mobile wallets take off.  The industry has been crying wolf for a long time, but there are some promising developments that hope to make mobile wallets a larger share of the payments universe.  Currently in the US, 55% of merchants have updated their payment terminals, and 70% of consumers have chip cards.  The chip card does a lot for security, but the argument is that it adds friction to the checkout experience.  With the card dip taking away from the user experience, the expectation is that mobile wallets will finally offer enough UX improvement over traditional cards that consumers might opt for them during payment.  It’s also reported that more than 50% of millennials have already used a mobile wallet at least once.  This includes Apple Pay, Android Pay, or Samsung Pay.  The growth in adoption with younger consumers is a good sign that broader adoption might not be too far behind.

My colleague Zil Bareisis has written about this quite a bit, and agrees that adoption could be driven by the emergence of EMV as well as an increase in handsets that support wallet payments.Wallets are also striking partnerships to add value, including introducing merchant loyalty, coupons, etc.The launch of Walmart Pay is a great example of a retailer applying these concepts internally, facilitating even greater adoption. For more information see any of the number of reports Zil has written on the topic.

  • Midsize institutions have a few paths to follow implementing a mobile wallet: Banks want to be a part of the adoption, but have so far taken a wait and see approach, unsure about the potential of existing wallets, and still trying to figure out what it means for them as the issuing bank. There are three primary ways a midsize or smaller bank can try to launch a wallet:
    • Building an internal wallet: This provides the most control, customization, flexibility of functionality, and control over the release schedule.  The drawbacks are that it can be a complicated task, a large investment is required, the institution needs sufficient subject matter expertise in-house, and there would be no Apple NFC support.
    • Buying a turnkey white label wallet: A turnkey solution would have the benefit of being plug-and-play, there would be some customization options, functionality would be built in, fewer resources would be involved, and the vendor would provide some subject matter expertise.  There would, however, be less control over the product, the wallet could be processor dependant, and the roadmap wouldn’t be controlled by the institution.
    • Participating in an existing wallet: For many this is the road that will result in the largest adoption.  The options are fairly universal, with Samsung, Apple, and Android offering networks here.  Its plug and play, easy to get traction, includes a lot of choice, and frictionless.  The drawbacks are mainly the lack of customization options or control over the direction of the wallet.

We often say that we go to these conferences so that our subscribers don’t have to.  This is just a short summary of the day, and obviously there was much more detail shared. We encourage all of our readers to attend these events, but will be there in case they can’t make it.

Will Banks Eventually Lead in Retail Digital Sales Growth?

I subscribe to Marcus & Milichap’s research blog. Getting my head out of banking from time to time is refreshing and provides useful perspective. A recent blog post commented on the changing make up of commercial property construction as a result of the continued growth in digital commerce. The completion rate of new construction (measured in millions of square feet) has been roughly a third of its pre-2008 boom. Dramatic indeed!

No big mystery, however. As retailers close stores (Macy’s is a recent example), property developers must re-adjust their development to sustain revenue growth. As large merchants exit, they’re being replaced with smaller service providers – restaurants, medical practices, financial planners and grocery stores – mostly services that are less likely to migrate online. Digital plays a role in my healthcare, for example, but I’m still going to see the doctor next week for an annual physical. It helps to do that indoors.

That got me thinking. Three years ago, Celent predicted a steep decline in US branch density based on an analysis of branch dynamics in other developed markets and changes in store densities in other retail categories. In part, we argued that reductions in store densities have been non-uniform across retail categories for a reason. In the final analysis, as commerce becomes more digital, fewer brick and mortar stores will be needed to fulfill the same level of demand. We argued that two variables play an important role: the susceptibility to digital self-service and the degree of product differentiation. Arguably, retail banking is highly susceptible. Loan rates are easily compared online, but you may want to try on a new pair of pants before buying.

Danger Zone for RetailSo, why is the reduction in US branch density occurring more slowly than other retail categories? In part, because industrywide retail banking sales mix lags other retail categories in its migration to digital. How do we know this? Through June 2016, digital commerce accounted for 13% of all US core retail sales. How does that compare to retail banking? According to a survey of Celent’s Branch Transformation and Digital Banking research panels, US banks and credit unions lag considerably, with roughly 90% of sales occurring in the branch or contact center.

sales channel mix

Here’s one reason I think this is so (see below).

shopbuyuse

Banks have invested heavily in migrating transactions to self-service (the “use” part of financial services) with polished transactional capabilities in the digital channel, but have paid comparatively less attention to making shopping for and buying financial services digitally frictionless. That’s now a high priority for a rapidly growing number of institutions at present. Good thing!

As banks do so, they will be rewarded with rapidly growing digital sales. In the past 12-months ending in June, total non-store retailer sales grew 14.2% YOY according to the U.S. Census Bureau and Marcus & Millichap Research Services.  Over the same time period Bank of America’s digital sales grew 12% YOY, representing 18% of total sales according to its July financial results presentation.

So, will banks eventually lead in retail digital sales growth? Absolutely – Bank of America is already there!

Citi’s geolocation move

American Banker just ran an interesting article about Citi’s foray into the use of geolocation (beacons) as it pilots several use cases in its “smart branches.” Several thoughts immediately came to mind as I read Tanaya Macheel’s well-written article:

  • The use of beacons for cardless access to branch ATMs after business hours was the lead use case cited in the article. But, that’s just one of a growing number of potentially very useful applications for beacons in retail financial services.
  • Banks have barely scratched the surface in more usefully integrating digital and physical channels as they seek to maximize customer engagement.
  • Geolocation, in particular, is under-utilized by retailers (especially banks) and remains largely experimental.

My hat is off to Citi for its purposeful investment in developing expertise in this area and to American Banker for writing about Citi’s work. In my view, the most impressive aspect of this initiative isn’t so much Citi’s pushing the technology envelope; it’s the organizational effort that was likely required. Getting its branch operations, mobile product management, IT and LOB leadership aligned represents real commitment to innovation.

How far ahead of the industry is Citi?

Here’s one data point. In Celent’s inaugural Branch Transformation Research Panel survey in (June 2015), we sought to establish a benchmark on just how far and how fast NA institutions were pursuing branch channel transformation. Of course, several questions addressed planned technology usage. Out of a dozen examples of technology usage, geo-location ranked dead last in terms of the liklihood of usage in future branch designs – just 27% of surveyed institutions thought the use of beacons would be "somewhat likely" or "very likely".

Branch Tech Usage

Pretty far I'd say!

There are *exactly* 608 US firms offering banking fingerprint authentication

Biometrics are hot. Fingerprint authentication (Apple’s version is Touch ID) is one of the most common forms of biometric verification. So, quick – how many American banks let customers log on to their accounts using this method? Based on the press, you might optimistically think a few thousand, right? And, in fact, ApplePay just activated its 1000th bank (adoption is another story, and the subject of another post). Well, as of January 31, the actual number (not an estimate, not an extrapolation, and not a piece of data from Apple) was 608. That’s 9.52% of the 6,388 FIs offering a mobile banking application. How does that compare to three months ago, at the end of October 2015? At that point just 252 FIs were offering it. That’s an increase of 241% in a quarter, certainly a sign of robust growth. Some of the increase comes from clients implementing from their hosted solution provider. Others (generally bigger banks) are developing it in-house. And yet, it’s not as popular with the large banks as one might think (of the 21 with more than $100bn in assets, only 8 offer fingerprint authentication; 3 of the top 4 have it). Bucketed Adoption Does fingerprint authentication pay off? By one measure, something we call “feature lift,” it does indeed make a difference for customers. Banks whose customers have installed fingerprint authentication have an uplift of 53% in enrolled customers per deposit account relative to banks who don’t offer it. While this is correlation, not causality, it shows that the banks who offer this feature have more customers enrolled in mobile banking than those who don’t. We’re looking forward to analyzing many more mobile banking features to see which ones offer the biggest impact on customer enrollment. Uplift How did we access this information? I’m very excited to say that Celent is collaborating with FI Navigator to analyze the mobile banking market in an unprecedented depth of detail. FI Navigator has assembled a database of every US bank and credit union offering retail mobile banking, together with the vendors who host them. We’re feverishly analyzing this trove of data to bring you a report at the end of April. It’s different from, and additive to, work made available to our existing clients; you can find the particulars here. To let you in on how the sausage is made, we originally tried to find out how many banks offered fingerprint ID by doing a standard search (which turned up press releases and the like) and by contacting a few vendors. We were able to arrive at roughly 250 banks in total, including several dozen from one vendor (from whom it was difficult to get precise answers in terms of commitments, scheduled go-lives, and actual implementations). It turns out that we undercounted by more than half. The beauty of the FI Navigator data is that it’s derived from a variety of sources – on a monthly basis – that let us deduce and infer a huge amount of actual information about the entire US retail mobile banking population, not just a subset. By integrating unstructured website data and conventional financial institution data, FI Navigator expands the depth of peer analytics and the breadth of market research to create vertical analytics on financial institutions and their technology providers. So, in addition to my excitement at this new and powerful data source, I have three takeaways about fingerprint authentication:
  1. The gap between hype and reality for fingerprint authentication is big, but shrinking;
  2. Banks don’t have to be large to do this; and
  3. More banks should be offering fingerprint authentication.
Why is your bank or credit union not offering your customers the chance to authenticate with their fingerprint?

Mobile in the time of digital

Bank of America recently announced that it would triple spending on its mobile app. While no exact dollar amount was given, it made me wonder: what exactly does that entail? In the past, Celent has praised the Bank of America mobile banking apps as some of the best out there. The bank has been going strong with its digital strategy for years, even closing branches and reducing overhead to drive adoption. Bank of America recently added features like touch ID, debit card toggling, two-way fraud alerts, and more to its app, and has been outspoken about the desire to personalize the digital experience. Its commitment to new features and functionality is reflected in the comments and ratings on iTunes and Google Play. Shown in the graph below, the bank´s mobile banking adoption has been steadily growing, with a growing share of deposits. Pictureforblog                     Source: BofA Annual Reports/ Investor Presentations So again: what does “tripling” mean when talking about an app that has obviously been well-funded for quite some time? As digital assumes a larger role with the business, the funding required to build a digital customer experience will extend beyond the reaches of mobile. The capabilities many consumers demand can be difficult if not impossible without significant effort on the backend to align technology. Banks are starting to realize this, building out unified digital platforms that streamline the architecture and better position institutions to offer truly modern, data-driven, and value-added consumer experiences. These kinds of initiatives can often run in tandem with larger cultural and multi-channel efforts. In the press release for the announcement, Bank of America said it was launching a digital ambassador initiative which, similar to the Barclays Digital Eagles program, will see front-line branch staff reskilled to be able to assist with digital channels. The bank is also launching cardless ATMs later this year. I´m assuming the coincidence of these announcements is anything but, and that the funds for “mobile” will largely be dispersed over (or fit into) a wider array of strategic digital initiatives. Institutions need to create a solid digital base within the institution, bringing in culture, personnel, and technology across all channels and lines of business to start transforming digitally. Banks are being challenged by the notion of “becoming digital.” Many have reached the point of recognizing the inevitable digitization of the business model, and are in the throes of decision making that will determine how equipped they are to appeal to the new digital consumer. Most institutions are experiencing these growing pains, and very few have committed to digital at the level demanded by customers. If Bank of America is indeed tripling its budget just for mobile, then I´ll be very interested to see the kind of features the bank develops over the next few years. Yet there´s a lot that goes on to make the front end look good and spending more on the front will mean more spending on the back. Mobile banking is a significant part of digital banking, but remember that it’s only ONE part. While new functionality gets the headlines, it’s what’s under the hood – culture and backend – that truly matters.

Is the tablet banking honeymoon over?

Only a couple years ago, as mobile banking was growing rapidly, and the conversation around development strategies was at its height, tablets played a prominent role in channel strategies at the largest and most digitally mature institutions. The consumer interest in tablets over the last year or two, however, has plateaued—even waned. Tablet is nowhere near dead, but sales have started to level off. According to ABI Research, tablet sales experienced a 19% YoY decline in growth from 2014-2015. There are a few reasons for this:
  • Tablets have low replacement cycles: Tablets aren´t being recycled at nearly the rate of phones. Partially this has to do with wear and tear—tablets typically sit at home, aren´t charged as often, and aren´t dropped nearly as much—but likely a bigger reason is the lack of major advancements in hardware.   There simply hasn’t been a new tablet feature in the last couple years for which consumers are choosing to shell out another $400-600 (or more).
  • Phablets have taken over as the preferred device: consumers are increasingly going for phones that can provide the screen space of a tablet with the mobility of a smartphone. Phones have been steadily growing in size to meet this need. Phablets can provide the processing power to accommodate the needs of consumers for less.
  • Tablets haven´t carved out a distinct enough use case: It´s still unclear to what extent tablets are devices of leisure, business, lifestyle, etc. There´s the Surface 4 and others that are starting to seriously go after the laptop market with a full operating system and keyboard, but the best-selling tablets on amazon are all those with small screens and cheap price tags.
Celent´s discussions with banks have largely echoed this change, moving to a broader understanding of digital strategy and what it means to be “mobile.” It´s not that tablets aren´t important—far from it—but banks have limited resources dedicated to digital channels, and institutions should be thinking about prioritizing development where the opportunity is highest. A recent Celent report on digital transformation showed that more than 65% of banks cite resources and availability as a barrier to digital maturity. So what’s a financial institution to make of all this?
  1. Use responsive design: A bank may have been able to manage native apps when there were only a handful of devices, but that´s no longer the case. Responsive design has evolved to the point of being able to provide the same look and feel through an experience automatically tailored to the user´s device.
  2. Think about the consumer-facing branch tablet: This could be roaming personnel in the branch, tablet-like ATMs and kiosks, or as a way to streamline the on-boarding process.   The characteristics of tablet interfaces should influence design in other channels.
  3. Design the right app if large tablets are going to continue to be a priority: As the form and function of smartphones and tablets begin to move closer together, institutions will have to reassess where the full tablet experience sits within its strategic digital priorities. The consumer-facing tablet experience may need to reflect the evolving use case.
Celent will continue to discuss the role of tablets in financial services going forward, but the conversation around mobile banking will reflect the larger digital channels picture, rather than tablet vs smartphone vs. online banking. We feel this is more in line with the way the market is moving.

Mobile, onboarding among dominant themes at FinovateFall 2015

When I’m feeling a bit flip, I tell clients that Celent goes to a lot of conferences so that they don’t have to. Don’t get me wrong: conferences are worthwhile, and you have a lot of serendipitous conversations. But they’re also time away from the office, and, to be honest, not every minute is completely productive. With that in mind, I’ll describe my very-high level takeaways of Finovate Fall 2015, held earlier this week at the New York Hilton. As I listened to each of the 70 7-minute pitches (2 presenters scratched), I tagged them in an unscientific way. Each company received two to eight words describing the space the problem they were solving and how they did it. Here’s the resulting word cloud: Finovate Word Cloud Mobile, unsurprisingly, dominated. I was astonished, however, at the prominence of “onboarding,” a term I used to cover a wide variety of solutions pertaining to account opening, from ID verification to assisted form filling. Many talked about eliminating friction, and creating a platform to support a particular service. Security and Fraud were prominent, as was the concept of components, often enabled by APIs. The biggest surprise: only two companies addressed Blockchain technology – perhaps that will change at FinovateSpring. Somewhere around the 60th presentation, I was struck by the variability in presentation skills and solution excellence. Being a consultant, I had to create a 2×2, below. What did we miss because the product or service was presented sub-optimally? Finally, a big thanks to the folks at Finovate – Celent values our partnership with this great event. If you’d like more detail, check out their blog, which describes the best in show winners. What did you like at Finovate?

Unbundling, Fidor, and the model for approaching financial startups

I´ve recently had multiple conversations with financial institutions about the trend of unbundling financial services by FinTech startups. In fact, it’s hard to discuss the future of the industry without touching on it. Articles from Tanay Jaipuria, Tech Crunch, and CBInsights speak openly about inexorable disruption. They all tell a fairly similar story. Unbundled products and services disintermediate financial institutions by improving on traditional offerings. Banks lose that value chain. Banks become a utility on the back end, essentially forced by the market to provide the necessary regulatory requirements and accounts for nonbank disruptors. With images like this (see below), it’s hard to argue that it isn’t happening—at least at some level. Unbundling-of-a-bank-V2 There are plenty of reasons to be skeptical about the hype surrounding disruption by FinTech players (shallow revenue, small customer base, etc.), but even if only a few manage to become sizable competitors, that still represents a significant threat to banks´ existing revenue streams. There’s also data pointing to higher adoption in the future. A study from Ipsos MediaCT and LinkedIn showed that 55% of millennials and 67% of affluent millennials are open to using non-FS offerings for financial services. This number is surprisingly high, and the largest banks in the world are paying attention. The threat of losing the customer-facing side of the business is a legitimate risk that banks face over the next 5-10 years. But there´s a possible solution that could enable banks to remain relevant even as they begin to see some of their legacy products or services fall to new entrants: be more like Fidor Bank. Fidor Bank is a privately held neobank launched in Germany. It has a banking license and wants to transform the way financial institutions interact with their customers by creating a sense of community and openness. The bank views its platform, fidorOS, as a key differentiator that allows it to offer customers services from start-ups or new financial instruments. For example, it offers its customers Currency Cloud for foreign exchange as well as the ability to view Bitcoin through its platform. Going forward, it may make more sense for financial institutions to take this approach. Banks can´t be everything to their customers, and there´s a healthy stream of market entrants trying to chip away at the banking value chain. A middle way is that banks become an aggregator for popular nonbank FinTech offerings as they become popular. This would preserve the benefits of traditional bundling by aggregating offerings and re-bundling them alongside its home grown services. Some benefits include:
  • Maintain the consumer facing side of the business by letting customers access these service through your platform
  • Increase cross-selling and marketing opportunities
  • Preserve a convenient and frictionless experience by reducing the fragmentation of unbundling
These benefits would provide value to both the FI and the FinTech partner, and it´s not a new concept. Netflix is effectively an aggregator of content from a variety of production companies (along with creating great content of their own). The music industry has been offering bundled services for more than a decade. Banks are loath to forfeit parts of the business, but as other industries have seen, the longer they wait the more disruptive the change will be.