Market Trend: New Market Entrants

Trends

• Trends: What do we look for?
• Technology Trend: Cloud Computing
• Industry Trend: Unbundling of banks – Lending Club
• Regulatory Trend: Deregulation – RBI granting banking licenses
• Industry Trend: Immediate everything – Payments
• Market Trend: Branchless Banking
• Market Trend: New Market Entrants
• Market Trend: Banks Extending Their Reach
• Industry Trend: Bank White-Label Services
• Industry Trend: Dual Strategies
• Societal Trend: Exploding Data
• Technology Trend: Banking API’s
• Market Trend: Digital Natives
• Market Trend: Mobile Adoption
• Technology Trend: Digital KYC
• Potential Technology Trend: Internet of Things
• Industry Trend: The Bank Finds You
• Potential Industry Trend: Mobile Wallets Replace Cards
• Industry Trend: Social & Mobile Payments
• Industry Trend: Virtual Currencies
• Industry Trend: Social Finance
• Technology Trend: Big Data
• Potential Industry Trend: Bank as Data Manager
• Technology Trend: WiFi Availability
• Technology Trend: Fast Cycle of Consumer Technology
• Technology Trend: Biometric Authentication
• Industry Trend: Social Servicing
• Industry Trend: Social Reputations
• Market Trend: Increased Substitution with Capital Markets
• Industry Trend: Aggregator / Comparison Sites

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.