Fintech professional’s tech predictions: 6– Banks to sell more unbranded services to websites

This prediction number six from a fintech contact of mine making tech predictions for the next five years.

Previous blog posts in this series predicted that tech firms will soon need government certificates if producing news content, to fight against fake news, and the cyber security risks associated with smart energy meters, the risks associated with sharing data, how social media will fall under increasing government regulation, and how the public will build a better understanding of privacy settings on websites.

This entry looks at how banks will increasingly become the suppliers of banking services to the big websites. They are not shy to close a few branches so why not take their brand name off services for other organisations?

Fintech IT professional says: “There is a movement towards a three layer model in which customers interact with the big brand websites (such as shopping and social media) as an entry point to multiple services.

The big brand websites will expand further into financial services that are provided by traditional banks in the background (white label service providers) which are in turn will be supported by specialist fintechs.

This results in the banks becoming suppliers to the big brand websites and may reduce the need for those websites to become financially regulated in the same way as the banks. Fintechs can sell to multiple banks rather than attempt to become banks and compete in that area.

The banks are already playing into this model by closing branches and ‘going digital’. Taking their brand name off a few web pages and putting it in the small print is not such a big leap. They will of course also continue to operate under their own names for as long as possible.”

Read part 1 here.

Read part 2 here.

Read part 3 here.

Read part 4 here.

Read part 5 here