Challenger banks must focus on new payment solutions in order to draw in customers, the managing director of The Tall Group of Companies has said.
Martin Ruda told an Institute of Directors seminar in London: “There is now a huge opportunity for challengers to create a new and innovative deposit platform, without the need for extensive branch networks.
“By this we mean the ability for corporate, or potentially retail, clients to deposit cheques remotely, and receive accelerated clearing with interest and funds availability without even visiting a branch.”
The Tall Group of Companies provides electronic payment technology to financial services institutions.
At another event on the future of bank lending, Robin Bowie, founder of alternatives investment bank Dexion Capital, said: “Innovation is taking place, and those with the capability to execute the best business models will emerge as the winners, who will consolidate and then monopolise.”
Gordon Bowden, director of Buckinghamshire-based Quainton Hills Financial Planning, said: “In essence, customers just want two things: ease of being able to monitor their finances and security.
“From the banking perspective it is difficult, because people do not want to go into a branch – which is how banks cross-sell.”