IBS Journal February 2017


07


success of the larger challenges will, primarily, be judged via the financial performance that each delivers, while the newer banks will be judged by their ability to deliver a service that matches the expectations set by their high media profile,” says Duffy. “But market reviews shouldn’t overlook the established retail banks. Recent experiences aside, these are highly successful businesses that have a history of seeing off potential usurpers – think, most recently, of the internet banks of the early 2000s or the converted building societies of the late 1990s.”


These FIs have a strong track record of innovation, he argues. For example, they have, over recent years, rolled out around 23 million banking apps to the British public, thereby revolutionising the way we bank. “Every day, these banks now deal with millions of customers logging in, checking their balances and accessing basic banking services, on an infrastructure built from scratch and largely


without incident. Or consider Faster Payments, the system which underpins mobile phone-based payments and makes possible new products such as Paym and Zapp. Such services would be unthinkable without the established banks’ commitment to, and upgrading of, the nation’s payments infrastructure.”


Undoubtedly, 2017 will see competition intensify. Many of the challenger banks will bring new ideas, technologies and services to the table. “This can only be a good thing. And they will have market appeal, particularly for those who would seek a new banking experience or who value technology-led distribution. But the established banks will be no push-over,” says Duffy. “They have the benefit of established market positions and deep pockets, both of which are very valuable assets. So, at Fujitsu, we don’t think that the established banks expect to face an earthquake in 2017 – but the challengers may be looking to cause a tremor or two.”


www.ibsintelligence.com


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52