"Banks are trying to be cool and modern, and build super-cool digital interfaces... But it's like putting lipstick on a pig; Ultimately, he is still a pig, "said Mark Mullen, executive director of AtomBank, a British digital bank in which BBVA controls 39% of capital. These words open latest report from Massachusetts Institute of Technology (MIT) on digital banking, which starts with a provocative question: "Have we reached end of banks way we know m?"
The truth is that digital transformation haunts bankers. "Staying same is not an option," says a veteran manager. Most of traditional banking feels as if Remaran to counter-current because it has entered with heavy structures (many offices and staff) and classic mentality in a war where light and ability to adapt to new. It has to serve both worlds at same time, traditional and mobile, and that means more investment without profit in short term.
Bankers admit that y need fewer offices (y have closed almost 40% of network) but do not bet on eliminating m altoger. They compete against banks without branches that operate with new technology designed for mobile and card. EVO Banco, N26 and Revolut are three different models united in ir objective: to Rob Millenials (and less young) clients working with traditional banks. "If banks did interesting things, we wouldn't be here," sums up Russian Nikolay Storonsky, founder of Revolut.
Contrary to what can be thought, Spain is not in lead in use of digital banking services. According to 2017 Digital progress report, of Eurostat, " use of social networks by Spaniards (67%) is higher than average of EU, but use of banking services and volume of purchases on line (54% for both indicators) are less than L European average (59% and 66%, respectively). Spain is ahead of France and Italy on average, but behind Germany and United Kingdom. Despite figures, Spain has elevated its ratio quickly: in 2007 only had a penetration of 16%.ING and BBVA, at head
In this battle against unknown, not everyone is on same level: ING and BBVA are headed. The Dutch bank, which broke status quo by launching its bank by telephone without commissions in 1999, has 95% of its digital clients. In BBVA, which has been transforming entity with strong investments for almost two decades, ratio is 50.1%, according to a study by Inmark group.
The defensive strategy against agile competitors has not been same: while BBVA opted for an integral adaptation, Santander created subsidiary Openbank, Sabadell Activobank and Bankinter Coinc. These subsidiaries serve to minimize expenses when test and error system is applied, while capturing most digital customers to whom products are offered at a better price. According to Leopoldo Torralba, economist of arcane investment firm, risk of this strategy is " cannibalization between customers and decline in profitability of bank."
But financial startups do not stop growing, but it is difficult to quantify. The legislation is in your favor. As Elías Ghanem, vice president and head of fintech of Capgemini Europa, says, "The key is PSD2 (Payment Service providers), which since January allows third-party access to customer accounts and start of payments on ir behalf. , prior authorisation of holder. "So far banks have lived quiet because y had control of data of ir customers, but now any bank or fintech can see m and offer better services and prices. It's a radical change. "
Ghanem recalls emergence of Orange Bank in France that only in March has captured 100,000 customers. "Operators have customer bases and a brand, so y can become dangerous competitors for banking. In Spain it is logical to do so. " Among those who will steal customers, Ghanem cites, in addition to classic glasses (Google, Apple, Facebook and Amazon) to Microsoft and Chinese Alibaba and Tencent. "These can work as banks, but with agility of a startup and are billionaires in money and data," he says.
Where are y attacking? According to consultancy PwC, y enter by services of payment, transfers and management of finances. PwC points out that bank is afraid of losing up to 24% of its income from intrusion of fintech. Torralba, of Arcane, believes that "digital native banks are not easy to rob customers unless y make large investments in brand," although y can harm m in products such as consumer credit. Capgemini believes that alliances between banks and fintech are "beneficial if y raise adequately." 45% of banks already negotiate with fintech, says PwC.EVO Bank: From classical entity to digital model
Enrique Tella was director of Caixa Galicia and is now CEO of EVO Banco, which has closed 90% of offices and dispensed of 60% of workforce. Now everything revolves around mobile: it has just launched a voice system to be first bank in world to operate this way. Tella says key is to use artificial intelligence to embody offers until bank can predict your financial behavior and advise you best. In addition, it must complement its offer with possibilities of investment (housers to enter real estate sector), discounts in Uber, fork, Booking.com (which includes to finance trips), etc. "The objective is satisfaction of client, not to squeeze it until The last commission or to take his hair with blocks of products that do not interest him, says Tella. He admits that Apollo Fund, owner of EVO, is looking for a buyer for bank.N26: A full bank for mobile and card
N26 is defined as " first banking licensed mobile bank to operate in Europe, with new simple, fast and contemporary standards that challenge traditional banking." In 2013 Austrians Valentín Stalf and Maximilian Tayethal founded it in Berlin, although y do not release it until 2015; Last March I had 850,000 customers. It has captured 134 million euros in last round of financing with which it wants to expand in 17 countries. It is controlled by founders, Allianz and Chinese Tencent. Francisco Sierra, his first executive in Spain, says that his platforms "are between 20 and 30 times cheaper than those of traditional banking, which are obsolete to work with mobile." They charge few commissions, everything is done by phone and card and expects to close 2018 with 100,000 customers in Spain, who do not ask to leave ir current bank.Revolut: With electronic money license
Revolut does not have a bank license but an electronic money operator granted in United Kingdom. It claims to be "better than your bank account" and all of its services are based on a mobile application that gives current account access and a card. is specialized in transfers. It allows purchase of Criptomonedas with a commission of 1.5, 1%. The money you collect is deposited in Lloyds or Barclays and does not directly grant credits, but through a loan firm. It hopes that Bank of Lithuania will grant it bank card in June, and it prepares its expansion for Europe; It has just obtained 200 million of funding and has multiplied its valuation by five in one year to 1.4 billion. In Spain it has about 80,000 clients and "We will finish 2018 with more than 200,000", according to its general director, Pablo Viguera. The Thin counselor, Nikolay Storonsky, said he left Credit Suisse "because in banks incompetent are promoted by making corridors."