Could a Bank get the same Hype as Pokémon GO?

Your bank app is probably one of the most boring apps on your phone, a ‘notification’ from your bank is a letter sent days ago (who still does that?) and most of us are not opening our mobile bank with the same enthusiasm as when we enter the world of Pokémon GO. No one has tried to make banking an exciting experience — until now.

You might have stumbled over the word ‘Fintech’ while reading the paper. Maybe you’re working in the financial sector and knows the terminology. Or perhaps this is the first time you’ve ever seen the word. Fintech is short for financial technology. Fintech companies use software to deliver financial services and the word fintech is usually used for startups that aim to disrupt the existing financial systems and organizations, such as banks.

Boring, right?

Well, not really. It’s actually pretty exciting. Fintech might sound less sexy than creating an app or something-social media, but finance and banking are ripe for disruption.

Let’s take banking as an example. You probably still receive letters from your bank. Their online solution doesn’t engage with their users. And their app or online bank is only used when strictly needed. Do you look forward to interacting with your bank online? Or do you dread it?

Not all apps or websites are like that. You open Pokémon GO with enthusiasm and curiosity, hoping to be entertained. You expect it. But, on the other hand, you expect your bank to be a pain in the ass. And you probably wasn’t as excited about downloading the new app for your bank as you were when you downloaded Pokémon GO.

Maybe that’s why bank accounts, loans and other financial services are boring. Nobody has tried to make it exciting, nor do most consumers expect a good experience while banking.

Comparing banking with Pokémon GO is a stretch, you say? The users might not be willing to walk miles to unlock the option to pay a bill. But businesses are now getting funded by engaging with customers and pre-selling products on Kickstarter rather than asking their bank for a loan. Do they enjoy creating a video presentation more than writing a 20 pages business plan and making a three year budget that will be outdated in two months? You tell me.

The above is just an example of how the widespread notion of banking being boring is changed by fintechs that develops engaging financial products and services. The founders of fintechs are often from outside the financial industry. They create teams that consist of professionals from a whole range of different industries. And they’re paying more attention to design and usability than most traditional banks — using gamification and other non-banking features and services to give a more exciting user experience.

New ways to handle money

There are already several successful fintech startups: TransferWise has made it significantly cheaper to transfer money across borders, budgeting is easier and more comfortable with Mint, and we all know Kickstarter.

Not to mention the many exciting fintechs that are reimagining banking. Mondo (rebranding soon), a startup from UK, that just got their banking license this month, market themselves as “a bank as smart as your phone.” That’s not just your typical startup hype. Mondo offers instant updates of the account balance, intelligent notifications, and a user-friendly interface. Another challenger bank from UK is Atom Bank, which also has a banking license. Atom is a mobile-first bank and they’re “packing an entire bank into their App.” Atom Bank claims to be redefining banking and one of their major selling points is being personal.

What’s interesting about these two examples is that they take their outset in the end-user. They develop their banking solution with an emphasis on the user’s challenges, pains and needs to ensure a relevant and personal experience.

From Disrupt or Die to Cooperate and Prosper

There’s been prophesies of banks being disrupted by fintechs. McKinsey proclaimed in 2014 that (traditional) banks wouldn’t survive if they didn’t digitize and focus on the end-user. Some fintechs used those statements in their marketing as ammunition against banks.

But there has been a recent change in the mindset. Fintechs and banks are now increasingly seeking partnerships with each other. They are acknowledging that cooperation can be beneficial for both sides.

Fintechs can help banks with innovation, user-friendliness, and exploring the newest technologies while banks can help fintechs with their large customer base, banking license and gaining the trust of skeptical consumers.

Banking can become more enjoyable, engaging, and interactive. Just like crowdfunding made getting funding fun, the new partnerships between fintechs and banks can result in the creation of a bank that you’ll finally love.

We’re facing a brighter future for banking. Take a screenshot of the current user interface — You’ll laugh at it in 5 or 10 years.