The future of banking
Over the past few years, the banking sector has slowly adopted a modern technology
stack. The reason is that new financial services are constantly pushing conventional
banks to a tipping point.
In the last 5 years companies like N26, Revolut or Monzo have gained massive
popularity. They are all digital banks that are accessible only through a smartphone.
They aim to simplify the way we are using banking products. Easy setup, multiple
accounts for different currencies, instant currency conversion with good exchange rates,
free ATMs in EU, no hidden costs, free to use. Those companies even offer a digital
money manager that will help analyze your budget and help build good financial habits.
With this, you can travel to different countries without having to worry about converting
your money to euros, pounds or dollars. Need to buy a travel insurance? No problem,
you can buy it from your app. Furthermore, app-only fintech like Mozno started to use
machine learning technologies to boost their business capabilities. Revolut invested in
blockchain ledgers and you can buy cryptocurrencies like Bitcoin, Litecoin or Ethereum
in their app. As a result, those companies are valued at approximately $2.2 billion each.
This new trend is not taking over only in the west. For example, China’s FinTech
companies have almost as many customers as top western banks and generated more
than 60b USD in 2016. Big tech companies like Apple or Amazon have also started to
invest in this sector. Apple card is coming this summer. A credit card connected with every
iPhone that will even offer smart payment suggestions to encourage us to pay off our
balance faster. Currently, it will be available only in the United States but with some time
it might come to EU and Asia.
With this new wave of fintech startups, customers expectations are growing and forcing
banks to change their digital strategies. And while nobody can really know at present how
the banking industry will be shaped in the future, the general consensus is that billions of
dollars are on the line.
Sources:
1. https://www.bbc.com/news/business-47768661
2. http://www.moneyguideireland.com/n26-compared-revolut.html
3. https://www.businessinsider.com/interview-number26-valentin-stalf-2016-04?IR=T
4. https://www.accenture.com/pl-en/insight-future-fintech-banking
Questions:
1. Have you heard about Revolut, N26 or Monzo before?
2. Do you think app only fintech companies can compete with traditional banks?
3. Would you trust your money with such companies?
stack. The reason is that new financial services are constantly pushing conventional
banks to a tipping point.
In the last 5 years companies like N26, Revolut or Monzo have gained massive
popularity. They are all digital banks that are accessible only through a smartphone.
They aim to simplify the way we are using banking products. Easy setup, multiple
accounts for different currencies, instant currency conversion with good exchange rates,
free ATMs in EU, no hidden costs, free to use. Those companies even offer a digital
money manager that will help analyze your budget and help build good financial habits.
With this, you can travel to different countries without having to worry about converting
your money to euros, pounds or dollars. Need to buy a travel insurance? No problem,
you can buy it from your app. Furthermore, app-only fintech like Mozno started to use
machine learning technologies to boost their business capabilities. Revolut invested in
blockchain ledgers and you can buy cryptocurrencies like Bitcoin, Litecoin or Ethereum
in their app. As a result, those companies are valued at approximately $2.2 billion each.
companies have almost as many customers as top western banks and generated more
than 60b USD in 2016. Big tech companies like Apple or Amazon have also started to
invest in this sector. Apple card is coming this summer. A credit card connected with every
iPhone that will even offer smart payment suggestions to encourage us to pay off our
balance faster. Currently, it will be available only in the United States but with some time
it might come to EU and Asia.
banks to change their digital strategies. And while nobody can really know at present how
the banking industry will be shaped in the future, the general consensus is that billions of
dollars are on the line.
Sources:
1. https://www.bbc.com/news/business-47768661
2. http://www.moneyguideireland.com/n26-compared-revolut.html
3. https://www.businessinsider.com/interview-number26-valentin-stalf-2016-04?IR=T
4. https://www.accenture.com/pl-en/insight-future-fintech-banking
Questions:
1. Have you heard about Revolut, N26 or Monzo before?
2. Do you think app only fintech companies can compete with traditional banks?
3. Would you trust your money with such companies?
I think that traditional banks will disappear in the future. People are more and more used to doing things quickly and as much comfortable as it’s possible. Today’s value is no effort, no fatigue. If those companies will work on the same rules as banks I will trust them (or not trust) as well as I do now, when I have money in “normal” bank. Maybe in a bank money are safe, but it doesn’t mean that we are still an owner of them. We have just a promise, that they give them back when we ask for it, but as we could see in Greece some time ago it’s just a promise.
ReplyDeleteDisappearing sounds a bit extreme. I think that banks are too big to just fail and go bankrupt. As for fintech startups they have to obey all financial regulations so they do actually work on the same rules as traditional banks. For example Revolut accounts are being protected by Lloyd Banking Group.
DeleteI'm currently using revolut application, but haven't ordered card yet. I think those apps are great to cooperate with traditional bank accounts. At the beginning I've had some trust issues about the security. I wasn't sure if my money will be save, but those systems make it easy. We don't have to transfer all of our money, just the amount that we need to spend. One thing that You forgot to mention that not only revolut (as far as I remember) but most of these applications have some additional functionalities which make using them very comfortable and they are great substitute for a lot of modern web applications and services. For example revolut gives us opportunity to prepare split bills or to make payment request for our friends, what saves a lot of stress and we don't really need to write down or remember who owes You what.
ReplyDeleteYes, you are absolutely right. All those apps have many additional functionalities to make our life easier. Personally I still have trust issues with them and only transfer small amount of money. Enough for Uber, quick trips abroad or Netflix.
Delete1.I never heard of it, I rarely look at the news about banks technology.
ReplyDelete2. I think that over time, I'm sure. People travel around the world and look for the fastest bank or cash solutions. He doesnt like to waste time dealing with things. This is a great way in technlogic development.
3.At that time, I would not trust. I need time until it is very trust and they are popular on the market.
Btw I think the safest method and so-so is ordinary cash
From all those 3 companies mentioned I knew Revolut only. It is a very nice and useful modern financial service. I used it only when I was on a holiday abroad due to the lack of additional fees caused by the currency conversion. FinTech companies are definitely a strong competitors to traditional banks and it is more likely that they will grow rapidly. Our habits changes quite fast and this modern approach seems more suitable for our generation. I have no fears against such companies and I would and I actually did already, let those companies operate my money. Security is my only concern and I don't know how safe it is. I like using credit card for payment and I trust it almost completely.
ReplyDeleteI’ve heard about Revolut but I had no chance to give it a try. Probably I will use it during my holiday journeys. I don’t know N26 and Monzo. I heard many positive opinions about Revolut and I suppose it can be considered a competition to traditional banking in some measure. Personally I wouldn’t store big amounts of money in Revolut but for everyday expenses it’s quite convenient solution. I predict that banking industry will start to adopt to these rapid changes and will also invest in similar services. I’m speaking from perspective of someone who is working in bank. I keep my fingers crossed for these new financial startups and look forward what happen in a few years.
ReplyDeleteI believe that modern financial services like Revolut or N26 will force traditional banks to improve their services. Competition is usually a great thing for us, customers. It will, hopefully, lead to innovations and improvement in provided services
Delete1. Have you heard about Revolut, N26 or Monzo before?
ReplyDeleteI heard about Revoult, and I will give it a try on the next trip abroad. I never heard about other ones.
2. Do you think app only fintech companies can compete with traditional banks?
Yes, mostly because of the prices. Those services served by Revoult for example are cheaper or free to use, while banking still forces users to pay for cash withdrawal abroad.
3. Would you trust your money with such companies?
Yes, I would. That's a great idea, because it's a real pain to withdraw money abroad without losing money. So they will compete with banking, but only in some areas. It's nice to have a tool like this abroad, but not for storing your whole money there.
I heard only about Revolut. My brother was encouraging me to download app. He said that Revolut is a perfect solution if you travel abroad. After I read all information about this my first thought was that my money may not be safe. Also, rumors that you must send photos of both sides of your ID card made me say "no". But after conversation with my brother I think I will give Revolut a chance one day. Of course I prefer traditional bank anyway.
ReplyDeleteSending photos of ID card made me uneasy as well. It took few months before I finally decided to trust Revolut and it was only because they managed to acquire a proper banking license. Fortunately they also acknowledge driving license
Delete1. I never heard about those names. I only knew that Apple is launching their credit card.
ReplyDelete2. This new kind of banking gives you a big benefit- time. We are looking at the fastest money in a bank solutions so some of us will definitely start using it.
3. I could try it one day. I would have to start reading it more about it.
I only heard about Revolut and it was just a few weeks ago. They seem to have a great offer for the customers. I heard that some banks try to block Revolut cards by adding huge transfer charges. It may suggest that they fear that kinds of companies and what they have to offer and that implies that in fact such a companies can compete with traditional banks. If it comes to trusting my money - I would definetaly use Revolut for travelling but I would not trust all my savings to such a companies right now. I would need to be sure that they are safe and that government secure these comapnies like it does for traditional banks - eg. Bankowy Fundusz Gwarancyjny.
ReplyDeleteYes, some banks charge you with additional fees for transferring money to fintech companies. I am actually a bit curious if those actions do not violate
Deleteanti monopolistic laws and regulations. As for safety, I think financial services still have a long way before they can provide the same level of security as traditional banks.
For sure in the future the system in which we live will change. It's hard to say how much. I believe that digital voting is a good idea.
ReplyDeleteEveryone could vote from anywhere on earth, we would not have to fill in voting requests in a given place if we are registered in another city.
This solution would help me a lot because I often fail to submit an application in a timely manner and I can not vote.
If we will use a trusted profile, it seems to me a safe solution. This year, we settled with the tax office in the same way. It was a much faster and more pleasant solution. Digitization is to simplify and facilitate access, of course there is always a threat of data leakage or a hacker attack.
1. I have never heard of the mobile banks listed by you before.
ReplyDelete2. It is definitely a currency-related solution. For frequent travelers, instead of a credit card. Completely not my topic :)
3. I don't have money in such companies. I use two banks with one I have been connected for years, it is not the best bank but I trust him.
1. Yes I did heard about Revolut, I'm actually considering opening my account there.
ReplyDelete2. Traditional banks often times have really old systems, and it takes a lot of their time to change/replace them. Fintech companies have a fresh start, can easily implement their ideas and I think its easier for them to take risks. Thats why I think they have a big chance in competing with traditional banking.
3. Yes I would as long as the company is already established on the market.
1. I've never heard of these companies before. I had no idea that there are banks operating in such a way, but I'm glad you wrote about it. Worth knowing :)
ReplyDelete2. At present, it seems to me that it is too early. But in the future, who knows? I think it is very likely. Personally, I prefer to use the desktop version of my bank. What does not change the fact that it annoys me that in these times I still have to deal with some matters in the bank's branch.
3. Not really. I heard about these companies just now. I think it will take some time before I can trust them. I would need much more time reading about this subject.
652/5000
ReplyDeleteI heard about Revolut about a year ago, I have been using their application for several months. It is amazing how many services are offered for free. On the other hand, you can find out about the possible commission for the operation after this operation.
I think that traditional banking in its present form is not right - it is simply ineffective. Just as the Internet gradually gains market for paper newspapers, fintech companies will take over the banking services market. It will not be a revolution, only an evolution.
The level of trust depends on the amount that comes into play. I am able to pay small amounts by paypass, but at present I would not entrust large amounts to fintech.
1. Yes, I have Revolut account and I can really recommend it. For me, it is most useful during travelling to other countries, as I don't have to worry about converting the money (if paying with card is possible, for sure). Application has a lot of interesting functionalities and it's really easy to use.
ReplyDelete2. Yes, as generally it's completely free. Also, for me fintech solutions are more convenient than traditional accounts in banks, as they bring really useful ideas to manage your money. From the other side, banks are more trustworthy, so especially elderly people are afraid of new technologies and they prefer to choose national banks.
3. For small payments, yes. But for now, I wouldn't store all money on such accounts (similar thinking as older people :D).
I heard about revolut, my colleagues have it and they showed me how it works. I saw all of benefits that comes with using it and to be honest I don't need one. As you said, apple card will be connected with iphones and this sounds good for me. Now I'm using bank app and pay by nfc.
ReplyDeleteHowever, I didn't know that this sector generate so much money and it's so popular, I’m impressed. In the future i will open this kind of account for sure :)
I’ve never heard about banks mentioned in the post but I’m using something similar named “Skrill”. In my opinion these types of services will replace traditional form of banking. More and more people around the world are changing their approach to digital services and this type of services doesn’t mean something strange for them. The most important argument to move whole this business to the internet is reduction of costs. It’s already happened in many different areas and it works. Of course, we need to create appropriate law to implement this to our lives and after that these services should be safe for customers. I definitely will use that services.
ReplyDelete
ReplyDeleteI'm using Revolut for some time now and It has its uses, but I don't keep my money there. Quite frankly I'm not able to definitely decide if fin-tech companies can take over traditional banking and if I would like that to happen. I think that a bank that has a 'physical' form are a bit more trustful then those purely virtual. On the other hand 90 percent of current money are virtual as well, so maybe fin-tech's aren't such a bad idea after all.
I'm sure that positive outcome of fin-tech appearance is that it will force traditional banks to revise their politics toward clients and will have to fight for them.
I heard about Revolut. I see it’s advantage in the fact, that you can exchange different currencies easily.
ReplyDeleteThe other important thing is that it's very international and can be used in many place around the world, without extra costs.
For me the best invention recently has been the BLIK billing system. I find it great for payments and money withdraw. And also it's supported by all the banks in Poland.
I think fintech companies can compete with banks in some areas like applications, but otherwise banks have much bigger assets
and therefor can offer more sophisticated products.
1. I never heard about those specific companies but I heard that they do exist in such digital form.
ReplyDelete2. Nowadays people use smartphone apps to nearly everything in their common lives that is why such digital banks can compete with the normal ones. I think that in the future we will have more digital banks then traditional ones because it's much more practical for todays people
3. I think I could trust them. It all depends how safe that bank is and how many customers do they have. You can always read people reviews on the internet about specific bank, what do they think about it and if it is safe to locate your money there. If you can mostly find good reviews it means it is a company you can trust.
Recently I've been abroad and had ordered myself a physical Revolut's card. It was troublesome, because at the last moment I got information that from my credit card I can't prepaid amount of cash I needed to Revolut. Most of all money came to my account mid whole trip. I also lost 0,5% on spread, because I did not know, that during weekends there is additional cost. I feel reserved regarding Revolut and such apps, I do not trust them. If they were regulated as banks, then ok, but currently I try not to keep big amounts on Revolut's account.
ReplyDeleteI'm not sure how will political system look like in the future but I believe that it can change for better becouse now days we live in some sort of paralitic democracy where everything is dictated by desire of posseing more money and power by individuals in the driver's seat. I would love to see specialist working with their teams on adventeguse prospect of a country. People who can describe their actions with proper arguments and actually change for better becouse they will do they job from passion and righteousness. I never used e-platform for voting but I think this is change for better since right now after elections all votes are counted manually which is a joke in my opinion.
ReplyDelete1. Yes I have I also have an account on Revolut. I was and still am sceptic to it but I use it only cause I make lots of payments in euros or dollars. Revolut has interesting currency rates, and that’s the only reason I’ve registered.
ReplyDelete2. Of course and they can. I don’t like traditional banks for one thing. When I have any issue I need to spend whole day in a bank. While Revoult support from which I have experienced is really helpful and quickly solves my problems. Also making an account on n26 is way faster than in traditional banks.
3. I’m already doing it and I’ve already saved lots of money by better currency rates than in my PKO account.
I have heard about Revolut but I did not use any of them, I just did not have such a need so far. I think that traditional banks are safe, it takes many years to change the habits of people, so that they will start to trust digital banks. Moreover, traditional banks do not sleep either and try to keep up with market trends. Personally, I do not have a problem with trust in digital banks but I do not think I would put a significant sum of money in such company.
ReplyDeleteI heard about Revolut and I was thinking about creating an account there, but in the end I did not decide. I think that the banking sector has developed quite a lot of customer service on the Internet and through applications on the phone. And the offer they have is quite good. The applications currently being developed by banks allow for a number of operations, a. i.: real-time currency conversion. So I think that only companies producing the best applications can compete with banks. I think I will wait until I fully trust such a company. At the moment I will satisfy myself with a traditional bank and its offer :)
ReplyDeleteI did not hear about Revolut, N26 or Monzo before.
ReplyDeleteI think it is the future of banking and how finacial system works. It takes few generations to do so, but now my grandfather don't want to use card to pay till today it is normal thing to do so.I would trust such companies but I would like to see some regulations around app only fintech companies.
I heard about revolut, but do not really trust it (I always wonder how they make money of it) - I am a bit too cautious person and did not want to send them the scan of my ID card. I think these days banks actively cooperate with fintech and are very open to new technologies (e.g. invest huge money in implementing various Big Data techniques for real-time fraud detection etc.). Such a close cooperation with fintecs indeed requires special regulations, otherwise some confidential client data may be exposed to some criminals etc.
ReplyDeleteArtur Mikolajewski
DeleteQuestions:
ReplyDelete1. Have you heard about Revolut, N26 or Monzo before?
Yes, I used all of them. I am sticking to Revolut for now. Using them for paying online subscriptions in dollars and euro (lower exchange rate from PLN) and during trips abroad.
2. Do you think app only fintech companies can compete with traditional banks?
Yes. Fintech companies are faster with delivering new payment solutions. A lot of transactions now held online - it's not really necessary to use classic bank account to manage money and daily payments. Banks are still the best option in terms of loans, savings accounts, etc
3. Would you trust your money with such companies? Yes, but I am not using them for large amounts of money. Because of cheaper exchange rates from PLN to EUR it's useful for smaller online transactions or paying abroad for meal.
1. Have you heard about Revolut, N26 or Monzo before?
ReplyDelete2. Do you think app only fintech companies can compete with traditional banks?
3. Would you trust your money with such companies?
1. I heard only about the Revolut before.
2. I think free market gives opportunity to all competition so as the google appeared almost from nowhere in a past and have got to be a leading company, the same can be with other entities.
3. I am not sure. Maybe for not big amount of money, then yes.