FT: Fintech users just can’t get enough of traditional banks

https://ftalphaville.ft.com/2019/12/18/1576674529000/Fintech-users-just-can-t-get-enough-of-traditional-banks/

Paywalled article, but in a nutshell:

“a new set of data from mobile data analytics company Ogury, which analysed the mobile banking behaviour of 688,000 people in the UK between 1 July and 30 September […] suggests the old high-street lenders needn’t be getting too worried just yet […] traditional banks not only still have a much larger share of the market, but also a far more faithful customer base – at least in the sense that the majority of their customers don’t use other banking apps”

As an example (it’s not critical of Monzo or any Fintech):

“Monzo’s exclusive customer base, while the highest among the challenger banks, is only 20 per cent, or less than a third of Barclays […] It is the biggest challenger bank in terms of market share, though its monthly active users were less than a quarter the number of Barclays’, at 6.2 per cent compared with 25.2 per cent for the traditional bank […] the top three apps that Monzo shares its customers with are Barclays, NatWest and Halifax”

The article makes several other relevant points – for example noting that the survey only covers mobile banking, not online banking generally, and that the fintechs have a much younger demographic that could turn into increased market share (68% of Monzo users, presumably extrapolated from the sample, are aged between 18 and 34).

I’ll admit I still use Barclays for my bills and Metro as my day-to-day spending account…

I like the idea of being able to call someone and get issues fixed quickly instead of having to wait for a “specialist”, wait for live chat opening hours or be passed from pillar to post… I’m a bit old school and believe that wherever possible the first point of contact should see an issue through from start to completion. (I practice what I preach and very much do this myself at work.)

I rarely use branches but whenever I do Metro have been awesome; where else can you grab a new card within minutes when you think the unattended card machine you just used felt completely off? (I literally walked into a branch I’d never been in before where I was warmly welcomed, explained my situation handed over my old card and within minutes there’s my new card…)

I still feel customer service and the personal touch is what let’s all these app only banks down.

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Exactly, front line staff at the new banks, can’t deal with most issues unless its simple and they just pass you on, or refer your case and you wait days if not weeks for a solution.

Barclays also offer card replacements on demand, which I’ve had to use once and its been very quick, efficient and no hassle at all.

I contacted Monzo 10am Saturday, got a reply 2am Sunday, I didn’t find that too bad it wasn’t urgent. However I contacted Barclays and got a reply in less than an hour for a similar issue, the new banks should be beating the established banks hands down.

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When I looked it up once online it stated you “had to have a good reason” which was a major sign they don’t like people rocking up for a new card. :stuck_out_tongue:

Not bad, although as you say other banks would have sorted the issue there and then on the phone.

My good reason was I couldn’t find it, I was drunk the night before, they was absolutely fine with that.

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As much as I am a big fan of the FinTechs, I can’t see me parting with my Nationwide account anytime soon.
It is my longest held account, still has free European travel insurance and is a condition of having a Nationwide credit card too.

These days though, it is only used for salary deposit and bill paying, with all my other finances being managed via various FinTechs.
I have been into the branch twice this year (both times to pay in cash), and I can’t actually remember the last time I used the card.

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Fair enough. :grin: