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@JeremyStevens: TY for your reply. Like I hinted with Mint, tools might not work in a B2C environment. Assuming your company sells such tools, have you tried an outcome-based service enabled by your toolset? Going by the success of PMS, your toolset's ability to deliver 200-500% increase in interest income could make a blockbuster out of such a service.

"Swift Creates Payment Pattern Anomaly Alerts for Customers" - WSJ.

Anomaly alerts - now that makes a lot of sense. And it's easy to come to terms with the possibility that anomaly detection technology to drive these alerts hasn't been available for much of the 30+ years of SWIFT's existence.

Despite legacy, despite allegedly slow development of solutions, financial services is the most profitable industry in the Fortune Global 500. Maybe there's something in the nature of the industry where speed to market is not as important as a "right first time" ethos? Maybe "fail fast" is not acceptable when you're dealing with people's money? First, fintechs claimed to disrupt banks. Now fintechs need to partner with banks. I think we're in the middle of the movie which will end with "banks will do business the way banks do, fintechs will do business the way fintechs do, never the twain shalt meet".

Yet another COIN?

Coin Solves A Pain. But Is It A 100 Dollar Pain?

Difficult to come to terms that SWIFT hasn't been sending banks "daily reports of their payment message flows" so far.

@MelvinHaskins: I've had exactly the same experience with leading AMCs. 20+ pages of T&Cs for a consumer product, complex formulas to calculate NAV that can't be understood even by the AMC's own call center and branch staff. More in my blog post titled Puzzle Versus Mystery: Who’s To Blame For The Great Recession (hyperlink removed to comply with Finextra Community Rules but this post will appear on top of Google Search results when searched by the title)

@JeremyStevens:

TY for the clarification. I now get your point. What you call "inertia", I call "calculitis" - the inability to whip out a calculator to do even basic math. IME, it afflicts 90% of humankind. PFMs like Mint came into existence around 10 years ago with the promise of fixing this problem by doing the heavy duty lifting of calculations by themselves and presenting only the insights for consumers to take action easily. Sadly, the problem seems to continue even now. 

On a side note, I read once that RBS refused a deposit from a customer because it could get funds from some other source (BoE?) for much cheaper. Is that a factor in this discussion? In your example, if the customer moved their GBP 1M away from HSBC, is there a reasonable guarantee that Nationwide would accept it at 1% interest rate? What if 100 customers did that? 1000 customers? 1M customers?

Just like I said before Brexit!

https://twitter.com/s_ketharaman/status/730057658204606464

https://www.finextra.com/blogs/fullblog.aspx?blogid=12420

Even in the most egregious case of breach of trust by a bank - i.e. Wells Fargo example - the money that was unauthorizedly transferred from a customer's account was transferred to another account in the name of the same customer. That's a lot of things but it's not stealing. Whereas when PayPal freezes a merchant account, the merchant never gets back the fees charged by PayPal. That's what I call stealing.

Therefore, inertia is not the reason why people still lend their money to banks. Lack of equally trustworthy alternatives is. Even in the post Wells Fargo world.

In From Multichannel To Omnichannel And Beyond, I'd defined omnichannel as "splitting a single business process across multiple channels in such a way that each channel leveraged its strength and the customer found each hop natural". This comes close to your definition!

ICYMI, according to McKinsey, customers want digital but “not to the exclusion of other channels". The article goes on to say, “many customers want to move freely from channel to channel in an omnichannel experience.” (http://www.mckinsey.com/Business-Functions/Operations/Our-Insights/More-than-digital-plus-traditional-A-truly-omnichannel-customer).

If fintech is defined as companies providing technology to the finserv industry, then banks have not been working in isolation at all. It is common knowledge that BFSI is amongst the largest buyer of technology for decades, with, say, your employer attributing nearly 45% of its revenues to this sector.

If fintech is defined as companies that offer financial products and acquire customers directly, it's common business practice across all industries to fight your competitors rather than partner with them (except in rare examples of "coopetition"). How often do we hear, say, your employer coming out of "isolation" and partnering with its competitors like Accenture or TCS or Wipro?