Digital technology and the rise of Gen Z are fueling a massive transformation in banking...
 | | | Consumers are increasingly gravitating toward personal finance management and digital-only features. To remain competitive, incumbents have had to keep a close eye on emerging fintech plays, as well as reexamine their own offerings to adapt to consumers’ changing preferences.
As a part of our Banking coverage, Business Insider Intelligence has identified some of the most impactful trends reshaping the landscape.
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| - Neobanks are digital-only, which means they aren’t saddled by traditional banking technology and costly networks of physical branches, and can offer considerably cheaper and more transparent fee structures
- 70% of US respondents to Business Insider Intelligence’s Mobile Banking Competitive Edge Study say that mobile banking has become the primary way they access their accounts
- Neobanks’ customer growth shows they’re winning over the masses: San Francisco-based Chime is adding more accounts per month than Wells Fargo or Citi
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| - US mortgage debt accounted for 68% of the total household debt at the beginning of 2019
- 47% of consumers would be comfortable applying online for a primary mortgage
- Fintech mortgage lenders are 20% quicker at processing mortgage originations than traditional lenders
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| - Financial institutions are investing about $1.7 billion annually in blockchain technology
- JPMorgan’s Interbank Information Network is the industry’s largest bank-led blockchain project and has attracted over 250 banks
- HSBC's forex trading initiative FX Everywhere went live in 2019 after reducing costs by 25% in its initial trial
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| - Regulators in the UK have handed out more than 15 banking licenses to neobanks
- Open banking regulations in Europe have forced incumbents to open up their APIs and authorize third-party providers to access customer-permitted data
- Banking regulations will open up new revenue streams that could reach $2 billion in 2024
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| - There are 68 million Gen Zers in the US, holding up to $143 million in buying power
- Financial service providers need to offer products that are digital-native: 46% of Gen Zers can’t go more than an hour without checking their phones, and 59% use technology for as many tasks as possible
- More than half of Gen Zers use digital wallets at least once a month for purchasing
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