Only 20% of European customers trust their bank to treat them fairly and honestly, but with a lack credible banking alternatives it doesn't actually seem to matter. As most customers see it, they can either have a bank account, or they can not have a bank account. Account switching legislation in the UK perpetuates the problem, Henry Ford style: “you can have an account with any provider you want, sir…..as long as it’s a bank”. Our new report, “Disrupting Finance: Digital Money Managers”, profiles a series of disruptors offering your customers a third way. Here’s why we think you should be worried:
1. They offer aggregation. Digital money managers offer aggregation because they have to, of course, but in doing so they enable users to manage their finances independently of the firms they don’t trust. Users can pick and choose products from different providers then manage everything in one place - a sort of iTunes for financial services. There's clear disruptive potential here, particularly if an already proven price comparison site acquires a promising digital money manager, as we've already seen in the UK with MoneySuperMarket’s acquisition of OnTrees.