08. 14. 2018
How to generate returns on digitisation? – W.UP Digital Banking Weekly
Wonder how you can have a bottom-line impact from digital investments? Why not learn a thing or two from banks who have been there, done that? This week, we also look at what some of the biggest digital disruptors have been up to in financial services.
Turn the digital flywheel
Nearly half of banks around the world say that their latest digital investments aren’t generating returns greater than the costs of capital, McKinsey reports. But don’t despair: there are a few leading players who boast a significant bottom-line impact. How did they pull it off? Check out McKinsey’s three turns of the digital economic flywheel for applying productivity gains as many ways as possible across the entire organization.
Starling unleashes banking-as-a-platform APIs
Starling Bank is rolling out its own banking-as-a-platform APIs that allow businesses to offer their own retail banking payments services, such as card issuing as an API, Fintech Futures has reported. How? According to the bank, its API can be implemented by adding just a few lines of code. What’s more, it’s directly connected to payment schemes like Faster Payments, SEPA, Bacs and Mastercard Debit.
Facebook denies WSJ report on banking data
Another day, another Facebook privacy scare. The Wall Street Journal reported that the social media giant approached large US banks with a proposal to offer banking customers the ability to do business within Facebook in exchange for their banking data. Facebook told TNW that they have indeed approached banks but only to incorporate banking chatbots into Messenger and they aren’t after customers’ financial data.
Start young, Monzo says
Monzo is making its digital current accounts available to 16-18-year-olds, TechChrunch says. That’s a staggering 1.5 million potential new customers. As co-founder Tom Blomfield often points out, unlike incumbent banks that basically have zero network effects, Monzo is designed to become more useful, the more people sign up. With more than 860,000 account holders and still counting, Monzo has cooked up a number strategies to grow its customer base, heavily relying on viral features and their fresh, young brand.
For more on how financial institutions can benefit from AI tools download our white paper on AI in banking sales.