Issue #311 - Why Do Consumers Love Fintechs?

Sandy Weill’s financial supermarket vision is coming to an inglorious end…. The Blockbusters of Banking…

Finance app downloads spiked by 15% during the pandemic, with mobile fintech applications outperforming banks by a factor of up to 10.8x, according to figures from mobile anlaytics platform App Annie.

Brian Hamilton says, 'You're going to see a lot more disruption in the space very soon'

The past two years have seen the valuations of the US’s most valuable venture (VC)-backed fintech companies soar. As of March 19, 2021, six fintechs were amongst the country’s top 20 most valuable VC-backed companies, and worth a combined US$145.1 billion, up 68% from their worth in 2020 of US$86 billion, data from PitchBook show.

The UK remains a hotbed for financial talent, technology, growth and investment, says Charlotte Crosswell, CEO of Innovate Finance.

Financial institutions must combine data, analytics, technology, and marketing automation to deliver a personalized experience that is customer-centric. Engagement must be based on real-time changes in consumer behavior, avoiding traditional product sales pitches but providing proactive recommendations that are fast and easy to deploy and respond to.

The Brazilian fintech company Nubank is now the largest neobank in the world, with 33 million customers and a $25 billion valuation. That valuation is already half that of Itau’s market cap, the largest public bank in Brazil, which has been around for more than 75 years.

Fintech platforms are helping to ensure customers not only understand what diversification means, but also how it can help them build a more balanced portfolio.

In this episode of Breaking Banks, Brett King is joined by Dr. Leda Glyptis, Chief Client Officer for 10x Future Technologies in the co-host chair and special guests Ryan Halstead, Vice President Sales North America for Jumio and Vincent Bezemer, Head of Strategy North American with Backbase. In the first half of the show, we explore the shift in consumer digital banking expectations and highlight why challengers are able to scale more quickly than traditional financial institutions. Then, tune in for the second half to learn about the rise of the buy now / pay later economy and frictionless credit.