Can Digital Challenger Banks Really Disrupt the Old Order?

I survived the debate at CSFI in London yesterday!

When Metro Bank PLC was granted its banking license by the UK Financial Services Authority in March, 2010, it was the first high-street bank to be granted such a license in over 150 years. Since then, a number of new challenger banks such as Shawbrook and Aldermore, have entered the market with a focus on underserved segments such as buy-to-let or commercial lending. Now, with the announcement that a number of “pure digital” banks, such as Atom, Fidor and Mondo expect banking licenses this year, we’re seeing a new type of challenger in the arena.

The question posed by Hakim Mendjeli, our chair at the Centre for the Study of Financial Innovation (CSFI) event yesterday, was whether these challengers could actually disrupt the incumbent big 4, who have invested heavily in their digital propositions, all offering mobile banking and rich digital channels for retail customers.

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