Grow Advisors (a Grow VC Group company) publishes its daily insight into the world of alternative finance and fintech. Here are some highlights:
4 market entry options for traditional banks to compete in online lending sector (& an invitation to join the conversation!)
Much has been written about the threat that new online lending platforms pose to the revenue and profit streams of traditional banks. In extreme cases, certain commentators have predicted the demise of weaker traditional banks at the hands of these disruptive online lenders.
The emergence and proliferation of FinTech platforms has been a wake-up call for the industry that has been trialing a range of responses, from those downplaying the threat to others looking to grasp the opportunity to transform into an innovative customer-centric lender.
For this edition, we will provide an overview of the four models and set up the discussion for subsequent editions.
Fintech – An Irish banking perspective
The number of challenger banks using new digital technology grows everyday.
It’s interesting to see that The Irish Times reported that the Bank of Ireland is planning to invest €500 million over the coming years to modernise its group IT infrastructure. Since the financial crisis of 2008 banks across Europe have been faced with the challenge of restoring balance sheets to meet the European Central Bank’s standards. This has involved not only working with customers to deleverage loans but by carrying out stringent cost cutting exercises, which often include branch closures and reductions in staffing levels.
According to a 2013 a report in the Irish Independent:
‘Bank of Ireland came last in the study of 21 banks and Ulster Bank came second last. Bank of Ireland had a consumer satisfaction rating of just 41%, a full 50% lower than the leading bank. It performed particularly poorly in relation to customer service, regular communication, clarity of statements and branch availability’
Read more at Grow Advisors Blog.
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This entry was posted on Monday, October 10th, 2016 at 6:30 am and is filed under Business Updates. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.