Disruptors in Financial Services
Is it that Simple?
Since 2010 we have heard rumblings of a new breed of bank – looking to take advantage of public antipathy towards financial institutions by positioning themselves as ‘non-banks’, or disruptors as they have become known. Typical common themes in these new arrivals in the banking world are that they have transparency of their charging models, often no fees for day to day banking, customer centric development of the online proposition, ease and convenience of use, are usually digital only and also have looked to create an ‘’un-banklike’’ environment.
So, what do todays traditional banks need to know about these potential business threats? We know that they don’t offer a full retail banking service, so they have a much lower level of fixed costs in relation to traditional retail banks, and are agile organisations able to make quick decisions about strategic developments and therefore can execute their strategies in a timely manner.
Now, more than ever before, traditional retail banks have the opportunity to revisit their strategies by not only choosing where and when they want to compete with disruptors, but also cherry pick their best ideas and features.
So this report highlights the three main brands that we consider to be typical of the new breed of disruptor brands: Simple, GoBank and Movenbank (rebranded in the first week of February 2013 as just ‘Moven’, dropping the bank element of their name completely just as Simple had done last year).
These banks are typically currently in beta mode as they build up their customer bases, but we have applied and registered for accounts on your behalf so we can share the real user experience with you. This report mainly focusses on Simple, as the early leader in this new movement. We cover the Top 10 features and learnings from Simple based on our access to their secure customer areas, by viewing and assessing the customer onboarding process from requesting an invite to getting access to the service. We also look at all the different platforms Simple use to convey their customer experience: desktop servicing, tablet servicing and mobile servicing, as well as viewing their unique and often quirky customer communications. And to compare and contrast with Simple, we also take a look at GoBank and Moven services including the business model, customer value proposition and features.
How long can you afford to ignore these new disruptors? Here is a sample of the report so you can decide for yourself.