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I did include neobanks in fintech. Challenger banks have a brick-and-mortar branch presence, so I can't accept them as fintech. According to me, most of the fintechs will die. It's only a matter of time. Let's see...

Your friend Steve visited the bank branch and spoke to a human being. That's CX, not UX. But that's not the real point. After all the poor UX Steve experienced from one bank, he got his mortgage from another bank. Why didn't he get it from a fintech, which you seem to believe delivers supeior UX? I don't know for sure but I can guess from my personal experience: I've been trying to get a credit card from my primary bank for three months. It keeps promising to process my application but nothing much has happened. I decided to ditch this bank and try a fintech. But, I haven't found a single fintech that offers a credit card. I suspect something similar with Steve and his quest for mortgage. Fintechs offer point solutions, one fintech for checking account, another fintech for loans, a third fintech for something else. When you offer so little functionality, it's that much easier to deliver a superior UX. But problem is with CX. Imagine the customer who has to deal with so many different fintechs to get a package of financial services that matches what they get from their bank - the fintech CX sucks. They have no choice but to go to another bank, like Steve did. It doesn’t make sense to compare the UX of a single product fintech with that of a bank offering a comprehensive range of products. Which is why I suspect Forrester has compared different industries on CX, not UX. On a side note, in Steve’s example, one bank lost revenues as highlighted by you but another bank gained revenues when Steve bought his mortgage from another bank. The banking industry as a whole did not lose revenues in this transaction, a fact that doesn’t resonate very well with the title of this post.

@AndyHirst: TY for your reply. All this you mention has to do with what external agencies can do with bank data. My point is about what banks are doing with their data. In my experience, they're doing quite a bit. Somebody else can say they're not doing much. How do we know who is right? Just because there's no YouTube video from a bank on the topic doesn't mean much.

I have a hard time believing that banks are not doing anything with their data. Way back in 2004, my company did a mainframe-based spend analysis application for a leading US bank. A few years later, our offering on payment analytics helped us make inroads into a number of FIs in USA and Asia-Pacific. Both offerings included many more insights than the ones delivered by the fintechs associated with the Spanish bank in point #3. We'll never know whether these banks are the norm and the Spanish bank, the exception or vice versa. But one thing is clear: Unlike fintechs who have to ride every flavor of the season to investment frenzy and valuation bubble, banks don't have to create a big hype about what they're doing with data.

True dat @AlexKreger, but Banking apparently provides the best CX of all industries in USA! 

https://go.forrester.com/data/cx-index/

This came as a bit of surprise to me but, if FORRESTER has said it, ...

"One touch authentication" solutions of the type supported by (say) HDFC Bank's PayZapp mobile wallet app already *minimizes* friction, as I'd highlighted in this blog post. Based on that, I'd expect a solution billed as "Zero touch authentication" to *eliminate* friction! Will yours do that?

Totally agree that UX / CX offered by banks has a lot of scope for improvement. But sometimes I wonder if that's only a banking-specific thing or a cross-industry phenomenon that has more to do with the lifecyle stage of a company. There are many new-age digital services that have beome big now, their UX / CX sucks, they don't even provide a telephone # to call or a branch to visit to vent our anger or share our feedback. PayPal comes readily to mind. LinkedIn is getting there fast. The UX of Twitter's Advanced Search, List and DM all suck.

@AndrewMuir + 1. 

Algo trading is arguably the only human invention that finds even the speed of light too slow, as evidenced by the laying of a new fiber optic cable in a straight line path from NYC to Chicago. I find it funny that innovationistas forget that feat of innovation from finserv and instead keep on gushing about banal features like MoMMAs (MObile Money Management Apps) that save $4.95 on a cup of coffee as though they're going to change the world. 

@AlexKreger: TY for your reply. Your LinkedIn article loaded but the graphic elements did not. But, if I take an educated guess, the technology you're talking about will need to access all those financial service providers aka I need to hand over my online banking credentials to the technology. That's expressly forbidden by FSPs in many countries for obvious security reasons. I for one will not take the risk of doing that. "Earn more. Spend less" is easier to practise! And, when done well, the number of FSPs will automatically come down!!

@AlexLetts: Is U the same as the UBank mentioned in this post? https://www.linkedin.com/pulse/finding-innovation-from-within-your-company-can-bring-jeremy-hubbard