Market Trend: New Market Entrants

By | June 18, 2014
This entry is part 7 of 30 in the series Trends

Customers are becoming more open-minded about receiving financial services from non-banks.

See the 2014 North America Consumer Digital Banking Survey study by Accenture.

Accenture estimates that “competition from digital players could erode as much as one-third of traditional retail bank revenues by 2020.

…and notes that “Alibaba, China’s equivalent to Amazon, became the world’s fourth largest money-market fund only nine months after entering the business.

…and “Google now offers a plastic debit card to go with its mobile wallet.

…and “bank leaders cited ‘new market entrants’ among the three biggest risks they saw in the year ahead.

See The Everyday Bank by Accenture.

Digital Bank points out that today non-bank providers handle over 15% of all payments worldwide, up from almost zero 10 years ago.

Deloitte observes that both sides of banks’ balance sheets are threatened by the security markets. This includes the new peer-to-peer lending services.  Start-ups with experienced bank management are entering the traditional banking markets to capitalize on an expected cyclical upswing in profitability and are able to secure funding on this premise.

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