Steve Edkins, CEO, FusionExperience, comments on the research from Investec which found that the challengers banks’ share of gross mortgage lending rose from 17.5% in 2011 to 28.8% in 2013*:
“We are now seeing that challengers to the big six banks are making significant inroads into the traditional banking sector. Their success is in part down to their use of behavioural economics to drive customer acquisition. The control that banks hold over their public perception is slowly being eroded by new entrants who are able to take advantage of the lack of trust in financial institutions by responding more accurately to customer expectations and needs.
The banking industry is edging closer towards a tipping point where the redistribution of cash liquidity will transform banking as we know it today. With the financial services sector seeing so many new entrants, it is becoming increasingly important for financial services providers react to the changing market dynamics being driven by consumers. These dynamics include improved products, reduced charges and a more ethical corporate policy”