The changing world of money

The changing world of money

Challenger banks are making a three-pronged attack on retail banking. What threats, opportunities and challenges lie ahead for the industry’s key players?


Partner, Global Co-Head of Fintech

KPMG in the UK


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The Changing World of Money outlines the obstacles and opportunities faced by traditional banks as new entrants disrupt the market.

The world of money is changing. The internet, social media and mobile devices have changed the way we buy and consume music, films, television and books. The same forces are now reshaping how, when and why we interact with banks; and changing our expectations of the traditional banking functions of lending money, taking deposits and handling payments.

The impacts and opportunities presented by challengers in UK banking:

Challenger brands entering the retail banking market have brought a new approach with them, whether it is digital-only, peer-to-peer services or a more customer-oriented focus. They have begun to transform consumer expectations and are eating away at the market share of the mainstay retail banks.

Warren Mead, Head of Alternative Banking at KPMG, believes banking is approaching what he calls its “e-book moment”. In KPMG report The Changing World of Money, he draws strong parallels between banking and the recent disruptions in the book market. If the big banks sit back and let current growth rates continue, by 2020 they could stand to lose 10% of their share. But for those who are able to learn from other industries, think disruptively and look to the challengers as innovation drivers, the opportunities are there for the taking.

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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