From automation to mobile-first institutions and solutions, disruption is the new normal for the digital banking space.
Financial institutions have rolled out a handful of new smartphone-first innovations for the digital banking space that are promising to bring disruption to the industry. From new pathways for mobile payment tools like Android Pay to expand their reach to the launch of new mobile-first banking institutions, the smartphone has clearly left its impact on the banking industry.
The May PYMNTS Digital Banking Tracker™ looks at the latest advancements in banking technology and how the rise of new “challenger institutions” are shaking up the digital banking landscape.
New Tools, New Types of Banks
In the past few weeks, several new players have staked out a share of the European market. For example, French telecom company Orange took its first steps into the finance industry by launching Orange Bank, the company’s mobile-only banking service. Meanwhile, financial consulting firm deVere Group just launched its own “challenger bank” in the Lithuanian market. And the digital banking party isn’t over yet, so expect more “challenger institutions” to make their presence known.
Beyond the rise of challenger and mobile-first institutions, a handful of companies rolled out smartphone-oriented banking solutions to change the way payments are exchanged. European mobile-first bank N26, for example, just launched a new business account aimed at helping gig workers track their work-related expenses and gain access to professional business tools. Several other global banks entered partnerships to enable users to gain access to Android Pay from their banks’ mobile apps. The move creates an avenue for more consumers to turn to mobile payments to complete their transactions.
Robo-Advisors: Are the Machines Taking Over Investment Banking?
Automation is a notorious job-killer. But does the rise of robo-advisors mean it’s time for human financial advisors to panic?
Robo-advisor firms have been on the rise for the past decade. The assets managed by robo-advisor services is estimated to be around $50 billion and is expected to rise significantly by 2020. But how will the solutions become mainstream? For the May Tracker’s feature story, PYMNTS caught up with Dan Egan, director of Behavioral Finance and Investments at robo-advisor firm Betterment, who discussed why investors might be willing to trust their assets to an automatic solution instead of a human advisor.
Check out the May Tracker for the full feature story, as well as headlines and trends from across the fast-moving digital banking landscape, and the Tracker’s comprehensive provider directory with 10 new additions this month: Aspiration, Chip, Clinc, DailyCost, Efigence, i-exceed, Infocorp Group, Moonraft, Soldo and Waleteros.
. . . . . . . . . . . . . . . .
TO DOWNLOAD THE MAY EDITION OF THE PYMNTS DIGITAL BANKING TRACKER™, CLICK THE BUTTON BELOW.
About the Tracker
The PYMNTS Digital Banking Tracker™ brings you the latest news, research and expert commentary from the FinTech and consumer banking space, along with the rankings of over 170 companies serving or powering the digital banking sector.