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Traditionally, online business banking has been solely based on the supply of financial products to businesses, and have neglected to support businesses in the areas of providing actual insight and support to help people run their companies.
Recently, incumbent banks have introduced digital services to address this issue. In the UK alone, online communities, business toolkits and workshops have been provided by banks to offer business support and advice. Strong brand equity and a lack of comparable information regarding services and fees means SME customers currently feel it is either too difficult or too risky to change service providers.
However, as we have witnessed across industry landscapes, an innovative and unique digital disruptor can completely alter traditional business models and change customer expectations. A reliance on client stickiness and lack of market awareness actually puts banks in a vulnerable position. Government initiatives are currently pushing for greater awareness regarding market offerings, whilst digital disruptors are leveraging consumers’ digital appetites and seeking to exploit gaps in current banking service propositions.
Can banks really be secure enough in their propositions that they need not be concerned by market challenges?