It may come as a surprise to many that nearly half of financial institutions don’t have a digital strategy. How do they need to start building one? At the same time, digital-only bank Sterling and car-sharing service Uber are expanding in digital banking and payments.
Still lack a digital strategy? There are four pillars to build on
About 43% of financial institutions don’t even have a digital strategy, according to the astonishing results of a survey by Boston Consulting Group. They point their finger at their infrastructure.
To build a digital transformation strategy, BCG recommends that banks focus on four priorities: reinvent the consumer journey, leverage the power of data, redefine the operating model and build a digital driven organization.
First digital-only bank offers business accounts in the UK
Starling in the UK is the first digital-only bank to offer business accounts. Business signing up for a Starling account will be able to use accounting and invoicing platforms from select partners through an in-app marketplace. New features to be added later this year will include being able to make cash deposits at post offices.
Does open banking mean the end of card payments?
We will soon have a payment mechanism that needs no physical token or infrastructure, is cheaper through greater competition and uses the bank account itself directly as the payment source, says Gavin Scruby, director at SmartDebit.
But what is the point of payment cards then? He believes that pre-paid loaded cards or situations where you need a physical token, cards seem like a payment hack that have had their time.
Uber seeks Dutch payments licence in drive to diversify
Uber has submitted an application for a European payments processing licence as it seeks to accelerate its diversification into a broad range of consumer-facing services, Sky News has reported.
Handled by a new subsidiary, Uber Payments BV, the application and the licence is expected enable the company to streamline its payment processes across businesses such as its core ride-hailing app and its fast-growing UberEats food delivery venture.