Stefan Mileschin

Traditional banks will fall further behind claims analyst

Traditional banks will fall even further behind in market share and customer experience while fintech will soar after the global coronavirus pandemic, a top analyst has warned.

Nigel Green, founder and chief executive of the deVere Group, said that the use of financial apps is up by 72 percent since mid-March.

Green said: “The pandemic has accelerated those trends that were already shaping business. These include greater inclusion of tech into our every day lives.

“Coronavirus has ushered in a new world, with digitalisation and new technologies fuelling the changes. This can be seen by demand soaring for video-calling platforms such as Google Hangouts, Skype, FaceTime and Zoom amongst others, as more people than ever work remotely. It’s underscored by the increasing use of fintech apps which allow users immediate, on-the-go, 24/7 access to, use, and management of their money.”

Green said: “There’s a historical precedent for what’s happening now.

“Banks and other traditional financial services providers were, in most cases, spectacularly caught off guard by the 2008-2009 financial crash.

“As they found their way into a new world with a new regulatory landscape and new customer expectations, business and tech developments were way down their to-do list. They were in survival mode.

https://fudzilla.com/news/50705-fint...virus-pandemic