The company’s report highlights both the competitive nature of the UK mobile banking environment and the challenges that new entrants have to surpass in order to be successful. To enter the market, digital banks have shifted their focus to various niches.
Monese, a new mobile bank, is targeting migrants as opening an account with the app that does not require a UK address. Other companies focus on building pricing (Atom Bank) and better integration with third party providers (Starling Bank).
The report suggests that for mobile banks to be successful, they have to create a unique identity and brand. In spite of efforts made by UK and EU regulators to create a better environment for fintech companies, consumer inertia remains strong as the number of UK consumers who switch bank accounts is declining. Furthermore, research by GlobalData shows that only a minority of consumers in developed economies consider using only digital wallets and banking services.
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