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Essential Fintech Reading: June 25 - July 1

Jul 1, 2016 3:05:44 PM

More U.S. Adults Who Break Up With Banks Go Online-Only or to Nonbanks
Annamaria Andriotis of the WSJ reports that "of the 11% of consumers who left their bank in the past year, 35% went to a nontraditional provider." This bodes well for established fintech players such as PayPal, and it should be a sign that banks and credit unions need to act quickly and decisively when it comes to the shift to digital banking.
 
 
Jim Marous summarizes research from Bain & Company that shows one reason why consumers might be choosing nontraditional providers. That is, Bain found that consumers say the primary reason they would recommend a banking service is because it's easy. What's more, the survey found that digital interactions deliver more delight than human interactions in most instances.
digital banking
 
 

Credit Scores Aren't Enough. It's Time for Financial Health Scores
Sarah Parker, director at the Center for Financial Services Innovation, says that we need to expand our view of financial health to include indicators such as whether people spend less than they earn, pay their bills on time and in full, have sufficient liquid and long-term savings, have a sustainable debt load, and more. 

 

To Transform Banking Start with Employees
Aimee Lucas and Bruce Temkin of Temkin Group have found that only 26% of employees in financial services are highly engaged. A major part of the solution, they claim, lies in convincing employees to accept a new vision of financial services. This will certainly include accepting the shift to digital, a shift that is exciting, fresh, and new.

 

JPMorgan embraces fintech startups through 'in-residence' programme
Finextra reports that JPMorgan is "claiming to have worked with more than 300 early stage firms, making around 30 investments over the last two years and piloting over 100 technology solutions in just 12 months." This certainly represents a shift in culture, toward becoming a digital-first company.

 

Jon Ogden

Written by Jon Ogden

Jon Ogden is the Director of Content Marketing at MX.

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