The ‘fintech’ revolution is certainly making things more clear. Firstly, it is all about focussing on the customers and secondly, today’s start-ups who have enough momentum to reshape the market. Thirdly, the fintech players are moving to the core of customer relationships.
This simple implies that only few days are left for the current banks’ business models. In fact, nowadays, customers want a bank that will not pounce on them but forget the mistake and make a repayment. Specifically, from the customers’ perspective, the start-up retail banks have interests perfectly aligned with their own. The start-up retail banks actually want to help the customers buy the things they want in an easier, quick and efficient manner and that too more cost effectively.
The start-up banks are taking different approaches and wish to apply the tech giant’s models to the banking sector. Seeing this ongoing trend, three different types of future banks are predicted to be formed in the future. The three forms are like:
Pipes: that provides basic infrastructure, ATMs, POS terminals and the connectivity. Offer basic building blocks of a bank for example: identity proofs, value store, credit line as an API able service. Enable other customer-led businesses to flourish
Stacks: Combine together a selected range of propriety products into a seamlessly connected service. Create a premium and good experience for the customers that will make them firm to use the bank
Hubs: Create an easy way for the user to connect with their own products and services. Own the central customer relationship and all customers’ purchasing and financial behavioural data. Acts as a customer’s identity broker. Offer their products next to third party products.
It is analysed that today’s banks are somewhere stuck in the middle of these three models. The banks are doing little of each but do not excel in any one of them. Banks unwillingly do a job of maintaining the ‘pipe’ i.e. the basic banking infrastructure. The banks are not good ‘stacks’ as in they have a loose bundle of first-party products that do not work well together. Above all, they have neither the open connectivity to be ‘hubs’.
But one thing is evident and it is change. In fact, today’s banks are ‘too big to fail’. This simply means that important choices are to be made so that the banks can transform into one of these models and also manage the transformation tactfully without getting affected by the internal vested interests.
Whatever model the bank may transform into, it is YOU; the customer who needs to select the best bank wherein you can get the services that best suits your requirements and are of your benefit. To get the most suitable and reliable bank services, you can get in touch with a renowned bank. In fact, you can also give a call at Santander customer care number so that you can clear all your doubts and avail the services quickly, easily and efficiently.