Need for Challenger Banks!!

Retail Banks across the globe face enormous cost for maintenances of bank branches, employees, Maintenances of ATM’s and kiosks and Service outlets to service their customers. As competition increases among the banking players, innovative technology solution helps banks to provide mobility banking solutions to serve the customers without compromising on security and compliance as per regulatory standards.

Challenger Banks are small retail banks which are operational in the United Kingdom. These banks provide banking services through Omni-channel platform to its customers. The Major advantages of challenger banks are 

• No physical branches of bank are available, which drastically reduces the cost of operation and increases profitability.   

• Customer are serviced only through Omni-channel platform (Mobile, Tablet and Net banking.)

• Able to attract large customer base with help of mobile technology and servicing through digital banking platform.

• Banks able to integrate with major card companies like Visa, MasterCard, for the banking payment needs of customers.

• Offering better product and services with help of AI / ML based on the needs of customer with help of API’s to external financial eco system.     

• These challenger bank will be offer banking solution majorly in the area of digital wallets, virtual cards & payments, Investment products & services.  

   Some of the leading challenger banks in UK & Europe markets are MONZO, N26, REVOLT , Finn and   Starling Bank .

In Near future, we can see only very few large banking players will have bank branches to serve their customers. As large banking players would like to have their own challenger banks, with help of their brand image & loyalty to attract more customer base via digital banking platforms. As these new entrants will provide tough competition to existing banking players in terms of technology, revenue, growth & profitability.