After a crazy start to the year with Tribe I am lucky enough to be currently sat in sunny Limassol after the first day of Nextgen Payments Forum and therefore thought I would take a few moments to reflect on the key themes of Day 1.
Firstly it is apparent that being a Bank is still considered to be a negative; a derogatory term if you like. The narrative of Bank vs. Fintech continues to thrive and although there is continued reference to ‘cooperation’ and ‘collaboration’ ultimately it still appears to be an us vs. them mentality. Why does a bank have to represent legacy?! We have heard from Starling at various points throughout the day and I think you would all agree that they represent a crossover between both. I think that fintech is as much a mentality as a business model. If you don’t want to live in a bureaucratic world then don’t; remove the committees and become (here it comes) agile…
But what is evident is that the incumbents aren’t taking this loss of market share laying down. I read today that one third of retail banks are planning on building digital brands and whilst there is still the underlying cost of running both a legacy and digital instance they are evidently realising that they cannot win if they maintain the status quo.
It is worth noting that the average NPS of a bank is currently 21; the NPS for a second hand car salesmen comes in at nearly double that! What this shows is a lack of trust and I think this issue transcends both fintechs and banks whether they are claiming differentiation or not. We wouldn’t recommend our bank, let alone trust it but equally would we trust a start up? So where do we go as an industry? This leads me to my final thought from today.
How do we ensure that we are driving both compliance and innovation?
I think there are a number of ways in which we can answer this but I am going to focus on one. TPP, APIs. Most of us are working out how to comply with the September deadline around PSD2. But why are we just trying to comply? Why are we not pushing the boundaries of PSD2? The current directive asks ASPSPs to provide the payment or account data based on an authorised TPP request. But let’s push those boundaries. With consumer consent we can provide further value. My view of Tribe is that it is as much of a data source as it is a payments platform. So, the question I need to take away is, how can Tribe support the solving of these problems; not from a transactional level but from a data level?
Thanks for getting this far. I’m off for a G&T
Chief Commercial Officer