Contis research: high street banks must partner with fintechs

By Olivia Minnock
New research from fintech organisation Contis has stressed that high street banks must ‘innovate or die’. The report found that 25% of UK consumer...

New research from fintech organisation Contis has stressed that high street banks must ‘innovate or die’.

The report found that 25% of UK consumers feel the traditional high street bank will be ‘dead’ within five years. Indeed, 40% of millennials either said that physical high street branches have either already had their day, or will disappear by 2025.

The report pointed to changing consumer expectations, in particular regarding technology, with 68% of consumers saying they want the same level of digital services from larger banks currently provided by challenger banks such as Monzo.

The research was done by Censuswide for Contis, and involved surveying 2,000 consumers. The report has been put together ahead of Money20/20 Europe, where Contis will exhibit.

 

SEE ALSO:

 

Based on the research, Contis has strongly advised traditional banks to innovate fast, and says this can only be done through partnership with fintechs. This way, they will be able to meet increasing consumer demands, without having to invent all the technology from scratch and replace their cumbersome legacy systems.

Speaking exclusively to FinTech Magazine, Contis CEO Flavia Alzetta said that these partnerships should be embraced and can be mutually beneficial. “It is well documented that banks are challenged by legacy technology, infrastructure and culture; fintechs aren’t. FIntechs are legacy free, API-driven and agile, creating solutions that are configurable and flexible,” she explained. “High street banks benefit from a heritage of trust, so combining this with forward-thinking, innovative fintech should be a partnership they all consider.

“Open Banking has been a great enabler to make this a possibility. Consumers demand choices of how and when they manage their money, increasingly digitally and always in a secure and reliable environment. Fintechs have to work to strict regulatory and compliance standards, but without the constraints of systems and procedures so can deliver solutions much more quickly.”

Share

Featured Articles

Pay Later: Does Apple's latest offering threaten BNPL?

We ask several industry insiders whether Apple Pay Later, the tech firm's foray into BNPL, threatens the market and risks marginalising smaller players.

Is Launching a Fintech Unicorn Easier than Ever Before?

With new unicorns in the fintech space emerging every week, we take a look at the traits that enable companies to scale at pace

Why BaaS is transforming the financial services space

We look at the latest changes in the BaaS space, taking into consideration new technologies, marketplace demands and changes in the financial landscape

Wealth management trends and the ‘new normal’

Financial Services (FinServ)

Innovation is driving fintech, Shuki Licht, Finastra CEO

Financial Services (FinServ)

SIX SME Banking Trends that are Disrupting the Space

Banking