Thoughts on Banking, circa 2015
It goes without saying, that startups have disrupted many industries just in the past few years alone. From Uber to Airbnb, the previous incumbents were hit so hard and fast, they seem stunned. Part of the tension between the old way and new way is the heavy anchor of regulation.
For Uber, they have and continue to fight their way into markets and break through this protective barrier. Even Tesla has to fight resistence of so called, Regulation, in their ability to sell direct to consumers.
Whats clear though is that the massive power of the consumer, specifically the consumer labelled “millenials” will ultimately break through this wall and create new, previously unseen business models.
I wanted to focus specifically on banking for a minute. There is so much disruption in this business that startups are slowly creeping into every crevice almost as if watching an alien invasion on a radar chart. From payments to loans, new entrants are testing and tweaking ideas and models to adequatly serve their customers.
What is odd is that it seems the slow moving incumbents are simply watching themselves being consumed almost as a paralyzed insect in the cross hairs of its predator.
Companies who do understand this are already tapping into successful methods used in other businesses, to reach and convert consumers (see example of SoFi using GiltGroup to acquire student loan consumers).
Ultimately, it will be those who move now and innovate and engage correctly who will be the leaders of the next generation.
At Call2ActionMedia, we are working on testing concepts that resonate with millenial consumers with www.TheCheapestRate.com.
Originally published at www.call2actionmedia.com on June 1, 2015.