Consumers are increasingly valuing what these ‘non-bank banks’ have to offer: Accenture has found that one in five consumers would be happy to bank with PayPal – a firm born in Silicon Valley, not in the Square Mile.
There is increasing pressure on banks to remain relevant. But there are those making waves. Lloyds Banking Group recently announced its intention to double-down on digital banking, closing branches and cutting costs. In the US, BBVA Compass announced that its agreement with startup Dwolla to offer real-time payment facilities to customers makes it the first mainstream bank to open its technology platform to digital developers like Dwolla. Such bold moves, even a couple of years ago, would have invited ridicule and a fair amount of controversy.