Millennials are not that special. Or at least, it’s not just them dictating the pace of change in banking, according to Bank of America’s CEO. In other news, most clients in Europe still stick with their main bank for payments, a survey has found.
Myth about millenials busted?
Digital enablement is more and more important to the changing operating model in banking, says Bank of America CEO Brian Moynihan. How important? In the last three months, customers logged into the BoA mobile app around 1.4 billion times, and digital already makes up 24% of sales, with further growth on the cards.
“The common theory is that this is all young kids, but there’s not enough young kids in anybody’s customer base to drive this kind of activity, so it has broadened out dramatically,” Moynihan points out. “By different types of things, you see different activity, but you have sales of mortgage or auto definitely also skew higher in age because the nature of people who are buying homes and cars, so it’s really across the board.”
Thanks but no thanks
Nearly three in five (58%) people in Europe choose to stick with their main bank for money services, ING’s latest mobile banking survey reveals. But others are branching out: in the past 12 months, 21% have transferred money through organisations other than their main bank, 15% have done so to make peer-to-peer payments, 13% used digital banking services and 9% borrowed money. Many of those who went beyond their bank did so to be able to make payments whenever they want, others cited convenience as the reason.
The survey also reported a steady rise in mobile banking: the majority of people use their mobile to check balances and verify transactions, with the highest shares in Belgium, Turkey and the Netherlands.
Make money with APIs
Creating new revenue streams is one of the sure-fire ways of API monetization, fintech influencer Tolga Tavlas writes. Let’s see his examples of an inbound and an outbound opportunity.
You share your client data with a third party, for example, a new car-sharing company. They need customers’ KYC details so they direct their potential clients to your bank at online registration. The client gives consent to sharing their data with the car-sharing company, which, in turn, pays for your services.
As for the outbound opportunity, your bank can save a lot of time and hassle if you buy a product you want to market from a third party in the form of an API instead of developing it by yourself. Of course, you’ll have to pay a fee or commission but this is still likely to be much cheaper and faster than in-house development.
Ebay to offer loans
Ebay and Square Capital have joined forces to offer eBay’s merchants in the US access to loans of up to $100,000 to grow their businesses.
Fintech Futures reported that select Ebay customers will receive email invitations to apply for funding through Square Capital in the third quarter of 2018. All loans will be issued by Celtic Bank, a Utah-chartered industrial bank.
For more on how banks can benefit from ML tools and what they can learn from other industries and competitors about implementing AI-driven technologies, download our white paper on AI in banking sales!