Disruption

The last six months have seen significant changes to the financial services landscape, with operational resilience, economic recovery, cost reduction and an acceleration of digital transformation as key themes emerging from the industry.

For hundreds of years, banks have been following a simple yet effective business model – they take money in from depositors and lend it out to borrowers. Despite public consensus, there is nothing more complex than that.

Banks have always relied on middlemen to facilitate different financial transactions, such as accepting deposits, lending money, processing payments and issuing checks, which can be time-consuming and costly.

New entrants to the banking market — including challenger banks, non-bank payments institutions, and big tech companies — are amassing up to one-third of new revenue, which is challenging the competitiveness of traditional banks, according…

Trust, context, the story, the relationship; these and many more are the strategy picks of today’s challenger banks, and the weapons of choice in today’s battle for the high street consumer. Below Finance Monthly hears from Yelena Gaufman,…