WHY ARE BIG-NAME BANKS LOSING THEIR YOUNG CUSTOMERS?

July 25, 2018

"For ten years now consumers have been used to getting less from their banks. Lower interest rates, fewer high-street banks and little reward for their “loyalty”.

Against this backdrop a quiet revolution has begun. New digital first challenger banks like Monzo, Atom and Starling are offering something genuinely different and are hoover-ing up younger audiences in the process. What’s more, Open Banking is set to explode consumer choice and making comparing and switching banks easier.

While these challengers pose a threat, established retail banks have a limited window of opportunity. At the moment young consumers are using these challenger bank accounts as “play money”, a supplementary account, allowing them to budget better, rather than a direct rival to the Big Four. However, this “play money” perception is likely to change as customers become more engaged challenger banks’ products and their brands become more established and more trusted."

Read more with Finance Monthly.