Would it really?
1 Like
Iāve only skimmed the article but I can see there being less brick and mortar banks. Since I went full Monzo well over a year ago Iāve not stepped foot in one and the reason for going #fullmonzo was all the cool features that help me manage my finances better.
Even when I wanted a loan I used a price comparison site and while I ended up using a legacy bank, I did the whole thing online.
So to conclude I agree, legacy banks certainly should take note of these fintech companies and start transitioning soon if they want to survive.
1 Like
There is definitely a battle going on in the High Street between those, mostly of older generations, who want actual bank branches to visit, and campaign vociferously when banks close the last branch in the town, and the (probably) younger generations who are perfectly at home never setting foot in a bank.
Inevitably, the latter will win as the former group simply die off, with the Post Office (or just PayPoint corner shops) picking up the slack for cash handling. Even cards wonāt need to be produced instantly inābranch as we become accustomed to loading up Apple or G Pay when an account is opened.
Indeed, if Tomās long term vision comes true, we wonāt even have āaccountsā and Monzo wonāt be a ābankā for ever.
āIf a bank really wants to be in a certain business, it can dominate a fintech company every single day because it has lower cost of funds and can afford to pay more per customerā
Iām not too convinced by thisā¦
a) Monzoās cost base is a fraction of the big banks, this is arguably more important than a low cost of funds
b) Users donāt only switch because they are paid (e.g. brand)
c) Monzoās tech enables it to do certain thing the other bank canāt do