Could Tech Giants Apple & Google Kill Off The Banks?
For all the talk of the disruptive capacity of Fintech start ups, it is the tech giants like Google and Apple that banks fear the most says a new global study by EFMA and funded by Infosys Finacle.
EFMA is a global not-for-profit organisation bringing together more than 3,300 retail financial services companies from over 130 countries. This study extended into about 70 countries.
The study, called Retail Banking, Industry Disruption says “Google has been active in financial services for some time with Google Wallet, but has had relatively little success so far. A more significant development recently has been Apple Pay, but banks and card companies are actually working with Apple to make this service more useful for their customers. There are no signs yet of these companies trying to launch banks and attack the core markets of the established players.”
Three quarters of those surveyed consider the threat from disruption to be high or very high, a significant turn around from the complacency that was evident in other studies even as recently as a year ago.
According to author Michael Pearson, “The highest perceived threat is from tech companies like Google and Apple, seen as high or very high by 45 per cent of banks. The next highest perceived threat is from start-ups, rated high or very high by 41 percent of banks.”
Despite the growing evidence that boundaries between industries are becoming more porous the study found that there was little concern from the banks about the threat from telcos, retailers and insurers.
Be afraid
Fear is a great motivator and the study found big increases in investments in innovation with the vast majority of retail banks increasing their spend in this area over the last 12 months. Much of that money appears to be going into channel development.
On the fintech front Pearson notes, “We have highlighted the innovation from start-ups in retail banking in our previous innovation studies, and the investment in FinTech as a whole has taken off dramatically in the last couple of years. Some successful challengers have achieved very high valuations which encourages more investment. Not all of these companies are competing with banks and many are potential suppliers or partners.”
He says some of the new technologies which have emerged in recent years are starting to have a dramatic impact on the banking industrywith mobility at the top of the list. “This is followed by advanced analytics/big data (57 per cent), open API’s (53 per cent ) and the internet of things (47 per cent).”
Peer-to-Peer (P2P) lending has emerged as the most disruptove business model and is “already affecting product areas like personal and small business lending, and money transfers.”
From a niche and quirky idea just a few years ago, now 40 per cent of bankers believe that P2P will have a high or very high impact on the industry.
Among the potential impact from the startups Pearson notes the following;
- Among the disruptive technologies the proportion of banks expecting start-ups to have a high or very high impact is 65 per cent for mobility, 57 per cent for open APIs, and 48 per cent for advanced analytics/big data.
- In the area of advanced analytics the proportion of banks expecting start-ups to have a high or very high impact is 58 per cent for customer intelligence, 58 per cent for social intelligence, and 56 per cent for realtime analytics.
- In products and services, banks expect that start-ups will have the most impact on payments (where they could be competitors, partners or suppliers) and on digital marketing (where they are most likely to be suppliers). In payments the impact of start-ups is predicted to be highest in P2P payments.
This article originally appeared on B&T’s sister site www.which-50.com
Latest News
Thrive Homes Targets Broad Audience In The Property Market With ‘Clever Choice’ Campaign
Award-winning house and land provider, Thrive Homes has launched a new brand campaign to encourage homebuyers worried about the complicated process of building a new home to say 'no' to stress and 'yes' to an efficient, more affordable new home without compromising quality by making 'The Clever Choice' and choosing Thrive.
NRL Beanies For Brain Cancer Launches For 2021
The Mark Hughes Foundation (MHF) has launched the 2021 Beanie for Brain Cancer Round, with the new look MHF beanies available across the country at NRL fixtures from June 17-20. The rugby league community will once again be asked to take the fight to Brain Cancer, in a bid to raise funds for much needed […]
Fintech Start Up DiviPay Bolster Team With Head Of Accounting
Fast-growing fintech startup DiviPay has announced the appointment of one of Australia’s most influential and reputable public figures in the accounting world, Trent McLaren, as its head of accounting. The move will enable Divipay to expand its reach into the accounting industry, with the aim of growing its business customer base. DiviPay, Australia’s first virtual […]
ABC Set To Move Staff To Parramatta
Airs a QAnon story on Monday, gets moved to Parramatta by Wednesday. You do the maths people, you do the maths.
Reporter Stalked By Creepy Neighbour From ‘Home Alone’ While Reporting On Murderer Who Used A Nutribullet & Ram Sedatives
A Channel Nine report on a woman who murdered her partner using ram sedatives and a poison mixed in a Nutribullet took an eerie turn yesterday when the live report was momentarily interrupted by the creepy neighbour from 1990’s Home Alone. Nine reporter Emma Partidge was reporting outside the NSW Supreme Court who’d just found […]
Adhesive Wins PR For Domain Group
Independent agency Adhesive has been appointed the public relations agency of record in Australia for the Domain Group, a leading property technology and services marketplace. The appointment will see Adhesive support PR & communications and campaign media activity for Domain, across consumer, corporate and B2B market remits. Adhesive will work closely with Domain’s in-house communications, […]
New Podcast ‘Come Out Wherever You Are’ Launches On LiSTNR For Pride Month
Sean Szeps is a gay father and a proud member of the LGBTQIA+ community who believes he does not know enough about those within his community that have different gender and sexual identities to his own. Feeling compelled to explore the unique experiences of every member of the community, Szeps’ new podcast, Come Out Wherever […]
Façon Magazine Celebrates Powerful Women In Femme Issue
Façon Magazine’s ‘The Femme Issue’ launches June 17, highlighting a collection of powerful women from the fashion industry and beyond. The 11th issue celebrates fierce women and passionate entrepreneurs who have made their mark in fashion, beauty, wine and finance industries. Cover star DJ Shiralee Coleman (pictured) shares her incredible journey from childhood to dominating the […]
triple j To launch Blak Out, New First Nations Show
triple j’s new First Nations show Blak Out is taking over the airwaves every Sunday from 5-6pm! Hosted by Yuin and Thunghutti man and rapper Nooky, triple j’s Blak Out will feature the best and latest music from First Nations artists across all genres, plus interviews, premieres, and playlists. To celebrate, it’s a Blak Out on triple j today! From now until 3.30pm, you’ll hear music from Indigenous artists only. Then Blak Out […]
Tuesday TV Wrap: Celebrity Apprentice Winner Announcement Tops Entertainment Charts
Shaynna Blaze was crowned the winner of this season’s Celebrity Apprentice, netting 733,000 viewers, as per OzTAM’s metro data. She beat comedian Ross Noble, he of the excellent hair, for the top spot. In reward, she raised $100,000 for anti-domestic violence charity Voice of Change. The rest of the episode peaked at 614,000 viewers. Top overall […]
Thinkerbell Unveils Trio Of Spots In First Work For Bupa
In their first major communications since becoming Bupa’s creative services agency, Thinkerbell has extended the ‘Because Life Happens’ platform with a timely six weeks free retail offer for new customers. The campaign urges young Aussies to join Bupa… right now…because life could happen…to anyone…seriously…any second now… Jim Ingram, national chief tinker at Thinkerbell added: “We’ve […]
Carrefour Partners With LiveRamp To Deliver Next-Generation Retail Offerings
Carrefour may sound like a character from Beauty and the Beast, but fear not, this is still a tech story.
Broadcaster Forced To Apologise After Reporter Threatens To Beat Up Heckler
B&T first aired this story on Monday so it does come with a whiff of three-day old leftovers in the back of the fridge.
Can Data Sharing Marketplaces Take On The Tech Giants?
Data marketplaces are just like your local farmer's market, just without the gozleme or giant orange juice machine.
A Road Map To The Right Marketing Combination
In this guest post, Dan Hojnik (pictured below), head of strategy and planning at Involved Media, argues that brand and performance are more closely linked than many marketers care to admit… I remember trying to explain the benefits of brand and performance marketing working together early on in my career only to have a strong-headed […]
LiSTNR Announces Collaborations With Apple Podcast Subscriptions
Good news this morning for podcast enthusiasts. Not so good for podcast advertisers, however.
10 ViacomCBS & Football Australia Announce $300 Million Socceroos & Matildas Broadcast Deal
Who doesn't love watching the Socceroos crush footballing powerhouses such as Palau and Tuvalu.
A Home For Marketing: How Medibank Centralised Their Marketing Operations For An Agile World
With a goal to provide Australians with “Better Health for Better Lives”, Medibank is Australia’s leading private health insurer, with more than 3.7 million customers through the Medibank and ahm brands. In addition to private health insurance, the Medibank group also offers a suite of diversified insurance products including travel, life and pet insurance. With […]
Ron Ramaiya Joins The Lab As Head Of Data Science
Ramaiya will be responsible for The Lab's data science capabilities and will take out the yellow bin on Tuesdays.
No Measurement, No Worries? What Apple’s Latest Privacy Changes Mean For Marketing
Privacy added to the list of reasons why Apple can charge you $2,000+ for an iPhone.
Life At LinkedIn With Head Of Agency & Channel Sales Lara Brownlow
Close your eyes and transport yourself into the LinkedIn offices here. Although, that will make it very hard to read.
“We Will Play By The Same Rules”: Google Says No To Self-Preferencing Ahead Of Third-Party Cookie Removal
Google says it will play by the rules here, although it isn't really a fan of the draw four rule in Uno.
The Turning Tide Against Surveillance Capitalism
Do you ever get the feeling you're being watched? If so, read this piece... or just close your blinds.
Kim Kardashian Spruiks Risky Cryptocurrency In Controversial Instagram Ad
Kim Kardashian unfortunately stops short of calling it 'kryptocurrency' in this latest promotion.
Great Southern Bank Rebrands With ‘Happily Clever After’ Via Indie Agency Richard Rose
Great Southern Bank has launched a brand campaign this week, ‘Happily Clever After’, coinciding with its name change from Credit Union Australia, bringing to life its purpose of helping all Australians own their own home. The journey to changing from Credit Union to Great Southern Bank began back in 2020. When Australia’s largest customer-owned bank, […]
Nine Promotes Jo Clasby To Commercial Director, Publishing
Nine has promoted Jo Clasby to the role of commercial director – publishing, where she will report to Nick Young. She was previously director of client partnerships – publishing. Her new role establishes her at the same level of seniority as Anthony Smyth, commercial director – radio. Smyth was promoted at the start of this […]
“No F*cking Way!”: Why Pink Floyd Frontman Turned Down A Facebook Ad
What is more rock n' roll: turning down a Facebook ad or swearing for no reason during an interview?
The Ben Roberts-Smith Defamation Trial Heats Up, With 21 SAS Soldiers Set To Testify
Has the whole Ben Roberts-Smith defamation case left you exhausted? Well, apparently we're only in week one of 12.
The Chaser Temporarily Changes Twitter Name To ‘The Stalker’ In Support Of Arrested Friendlyjordies Producer
If you're going to piss someone off on YouTube, best it's not anyone with the NSW Police Force at their disposal.
Accor Celebrates Aussie & NZ Cities With New ‘Go ALL Out’ Campaign
Hospitality giant Accor is shining a light on the joy of cities through its newest campaign, ‘Go ALL Out’, which launches in Australia and New Zealand today. The gateway to the ‘Go ALL Out’ campaign is ALL – Accor Live Limitless, a lifestyle loyalty program that integrates rewards, services and experiences throughout the Accor portfolio […]
