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It’s banking, but not as we know it

Some brands are fairly ubiquitous.

I have a Sony
TV, Sony Mobile, Sony Laptop and Sony Games.

My friend has a Virgin Mobile,
Virgin Media with Virgin Broadband and Virgin Television, and flies with Virgin

Another shops with Tesco online using Tesco broadband, they use
their Tesco mobile whilst shopping in Tesco stores.

These brands are
trying to be all encompassing and have another thing in common: they all own and
operate their own brand banks.

Their banking services are not as
successful as some of their other services but they could become core.

They could become serious contenders.

They could knockout
current banks from their core customer proposition.


more …

About Chris M Skinner

Chris M Skinner

Chris Skinner is best known as an independent commentator on the financial markets through his blog, the Finanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. To learn more click here…

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  • Chris
    Interesting post, but I get to perhaps the same result following a different path. Retail brands want to minimise the friction involved in purchasing their goods and services. If that means introducing functionality hitherto provided by banks in an awkward way, which solves a critical customer need or otherwise sufficiently improves the customer experience to improve sales, then they’ll do it. That’s not to say they’ll go into “banking” directly as a core proposition – i.e. treating depositors’ cash as their own asset and trying to make a turn on it (and that isn’t really what Tesco is doing). That would involve too big a capital “drag” on their business models, at least in the medium term. Instead, the result will be that today’s retail banks will end up as the back office for much better customer-facing functionality and services than they can ever hope to provide in their own right.

  • Here in the US the market for retail banking has become so competitive that it’s hard to imagine retailers getting into the game in any big way. At the same time the market for credit card and other payments products is in a holding pattern and this is the big opportunity for retailers who want to strengthen relationships and build new services into their value proposition.