In recent years the banking sector has been making a shift from conventional retail banks towards a more flexible client – bank relation. Worldwide challenger banks and fintechs have sensed the market needs and in no time tried to bridge the gap. People talking has an important role in this debate but influencers' posts have a much bigger gravity in changing the balance in either side.
A freshly published report by Onalytica explores the role of influencers in the development of fintech and it also points out the interesting mosaic of the U.S. community who uses social media to form the public opinion about banking habits. Moreover, it is a safe way to deduct conclusions on the prevalent trends that shape this sector along with digital disruption. Banking seems to be more attracted to digital disruption, given that investments in digital transformation initiatives are expected to surpass $2.7 trillion by 2020 according to Fintech Innovation.
Digital services are catching up, in 2015 revenues from mobile payment services add up to $450 billion and they are planned to surpass $1 trillion in 2019. Growth comes quite naturally as the investments made on challenger banks and fintech startups, which from $2 million in 2013, soared to $453 million in 2016, are expected to break $1.2 billion by 2020.
Onalytica's analysis adds some new data to a fast developing ecosystem. Challenger banks are leading the debate on FinTech with 574 social influencer posts, compared to 438 from Retail Banks. Αmong retail banks, the most renown ones are Citi Bank and Bank of America with Capital One ranked third. Among the challenger banks, Revolut and Ν26 USA, the spearheads of the fintech debate, owning 25% και 23.3% respectively of the market despite the fact that Ν26 USA has not made yet an official entrance into the U.S. market.
We consider that in the next years retail banks will change attitude and they will try hard to close the gap, by magnifying their part in the ongoing debate. However, both sides are expected to focus on different fields of competition. Retail banks target cybersecurity and more digital banking oriented services, while challenger banks look to fintech innovations.
New tales replace the old ones and at the mere thought of this, some bright spirits feel the adrenaline. For the banking sector, the retail banking tree is so deeply rooted and so packed with valuable experience that very few storms may touch it.
