By Gareth Vaughan
One of the big questions in banking remains to what extent will tech giants such as Apple, Google and Facebook muscle in on the financial services sector?
The answer, according to Moven's New York-based Brett King who also writes books on digital banking and hosts a radio show on the same subject, is act as a go between banks and their customers. Clipping the ticket for their trouble.
King told interest.co.nz in a Double Shot interview the biggest threat from the tech giants to banks is in what he calls the last mile.
"Right now banks are used to customers coming to them when they need a solution. But they're getting weaker at owning the customer because right now banks are pretty much still waiting for customers to come to them if they need a bank product or service," said King.
"So organisations like Apple with iTunes, Google, Facebook, these guys own access to customers and understand customer behaviour, their interests and other things more intimately. So it's not going to be long before banks are going to be having to go to the likes of Google and Facebook to get access to customers for customer acquisition."
"And if I was Google, Facebook or Apple that's where I'd be focusing," King added.
"Having said that Apple has been looking at the payments landscape for many years now. Their first patents on this were in 2008, 2009, so they're definitely cooking something up. My view is that they might see themselves as a competitor for a basic bank account. The iTunes account could very easily act as a sort of debit card device."
"But I don't think they want to compete in banking. I don't think any of them want to carry the risk or the complexities of being a bank (and be regulated like a bank). I think their view is they're quite happy to act as a go between between the customer and the bank, and have the bank pay for that access. And I think that's probably the way they'll go," said King.
Moven this week announced a four-year exclusive New Zealand partnership with Westpac. The two say initially this will see Moven’s mobile money management tool integrated into Westpac’s internet banking platform in October, helping Westpac's customers manage their money day-to-day on their smartphones, tablets, or desktop computers.
This story was first published in our email for paying subscribers. See here for more details and how to subscribe.
13 Comments
With the banks on track to make about $1000 profit per Kiwi, its about time someone stepped in and ended their rort.
Kiwibank looks like it's stalled/failed in its efforts to change the status quo and look more and act more like the other banks with respect to excessive fees, big IT spend ups and shedding staff to meet bottom line targets.
Step up Heartland, TSB & Coop... please.
Cowboy, I don't believe Heartland is "significantly" Chinese owned.
Heartland Bank is owned by the NZX listed Heartland New Zealand Limited, which has about 8,000 shareholders. Any stake over 5% has to be disclosed. Only three have been and they are ACC with about 7.7%, Seniors Money International with 9.3%, and Harrogate Trustee Limited, which is Greg Tomlinson, with 9.6%.
Cheers.
Hmmm. I was looking at livestock finance at the time, and that was what their rep told me. Because of that I never followed it any further. It was about 18 months ago. I was enquiring because of the stability issue with NZ finance companies at the time and didn't want my loan called up.
Disintermediation will affect banks with peer to peer lending, crowd funding, micro finance, and purely online business models that don't carry the cost of bricks & mortar costs.
Downward pressure on interest rates especially for personal loans, car loans, credit cards which are still at pre GFC rates, although some downwards movement recently, as lending growth rates slow.
Many bank customers want ZERO corporate interests between them and their finances.
If the banks end up beholden to the likes of iTunes or Apple then they only have themselves to blame (for chasing tech and chasing customers). The services do not need to be pushed through those channels
49 out of 50 bank transactions today are done on mobile devices, only 1 in 50 are done face to face in the bank or by an adviser. It's not a cooincidence that the latest mobile devices are coming out with finger print scanners. Don't expect Apple and Google to rush in though; I guess that there will be strategic allliances.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.