Jim Marous from The Financial Brand highlights a study about the gap users see between what their financial institution offers and what users which they offered. For instance, there's a 30-point gap between those who want financial advice and those who get it, a 25-point gap between those who want help identifying changes in spending patterns, and a 23-point gap between those who want services suggested in real time.
The United States has seen enormous investment in fintech in the past few years, but when it comes to sheer percentage of users adopting fintech services, China stands far ahead of other countries, according to an enormous report from EY. This means that banks and credit unions in the United States shouldn't be surprised to see technology from China eventually spilling into markets in the West.
Jaclyn Selby, researcher and tech startup advisor at Stanford University, says, “Banks should be terrified of Amazon because of one word: convergence."
"Amazon is essentially industry agnostic, which means they’re not in the business of selling you anything in particular; their entire model focuses on reducing transaction costs around the exchange of all goods and services.”
Ryan Lawler at TechCrunch writes about the rapid rise of Credit Karma and how their revenue model works. “Based on its own financial models, Credit Karma determines which cards or financial products a user is likely to qualify for and on what terms, and then passes them off to the financial institution. The company then makes money off qualified referrals.”
Antony Jenkins, former chief executive officer of Barclays] said, "Now we will see the possibility – not necessarily the probability – of what we call a 'Kodak moment', where increasingly banks become irrelevant to their customers."
Grace Noto of Bank Innovation writes, “Still working on that Venmo-killer app? It might be a better idea to focus on its parent company. Most millennials—more than 90%—have used or are using PayPal currently, according to the Millennial Money survey released last week by Vested.”