Skip to main content

Consumers Want Tech Firms to Take On the Banks - Bloomberg

xxx

Instead, du Toit predicts, banks will partner with Amazon and others. Lenders would manufacture financial products, and tech giants would serve as distribution and servicing channels. In other words, what Amazon already does with consumer goods.

Yet because distribution accounts for two-thirds of banking profits, according to a McKinsey & Co. report, banks may not love being relegated to mere factories for mortgages and credit cards.

And because Amazon wouldn’t have to pay to lure customers -- it already has millions of them -- it could afford to set up digital accounts without “all the nuisance fees and relatively high minimum balances” that lenders impose

From Consumers Want Tech Firms to Take On the Banks - Bloomberg

xxx

Comments

Post a Comment

Popular posts from this blog

Euro area card payments double in a decade

xxx "The number of card payments in the euro area have more than doubled in a decade as consumers increasingly dispense with the hassle of carrying notes and coins, according to the latest statistics from the European Central Bank. In 2018, card payments accounted for almost half of the total number of non-cash payments across the single-currency area. Credit transfers and direct debits were the second and third most common non-cash payment methods, accounting for approximately 23% each, while e-money and cheques together made up around seven percent. However, the relative popularity of each type of payment service still varies widely across euro area countries. In 2018 card payments accounted for just over 70% of all non‑cash payments in Portugal, compared with around 23% in Germany. The stats show that the number of card payments made by consumers and businesses has more than doubled in the last decade, with an average of 121 card payments per capita in 2018, compared with
Post a Comment
Read more