Banks tackle fintech challengers as they struggle to be preferable to a dentist visit
According to the Millennial Disruption Index, 71 per cent of young people would rather go to the dentist in Marlborough than listen to what their bank is saying, and new research from Viacom’s research arm, Scratch, finds a third of Millennials expect to be bank-free in the near future.
Meanwhile 75 per cent say they would prefer financial services from start-ups and tech companies such as Apple or Google.
US fintech phenomenon, SoFi, has been at the forefront of new customer acquisition and retention strategies, including career counselling and using data analytics to match-make their customers in “Singles Nights” cocktail functions.
The Big Four Australian banks know the challenges that lie ahead and have been busy investing billions in technology, change management and partnerships to maintain relevance.
Each has established significant innovation labs in their head offices to design new products and services. ANZ co-invested in its Sydney lab with IBM as part of a broader $450 million deal and has an offshore lab in Singapore. CBA also has labs in Hong Kong and London.