UK Banking: What’s Emerging from the Flux
New disruptive models for deposit taking – direct banking, multi-channel offerings, self-service automation – is one business trend that dominates. ICICI UK has being able to give one of the highest card rates in UK for deposits through its deposits offering - HiSave. UK-based service provider, Monilink, provides mobile banking and payment services to its end customers and new banking entrants, like retail giant TESCO, have personal finance divisions which provide financial services to customers. A recent agreement with 2 major banks, which entails these banks to sell off a segment of their branch network to finance injection of funds, partly, is further opening up forums that till now had been dominated by a few big banks only. The population diversity in the UK can throw up some interesting possibilities. New breeds of products like Islamic products would possibly start taking some shelf space at banks as we go forward.
There also seems to be a move towards consolidation as the new economic regime unfolds. This would ultimately provide stimulus for banking platform upgrade and replacement.
As economies the world over start cranking up and newer players make inroads into the market, the scenario is sure to become more aggressive, and indeed there would be a stronger case for new generation banking.
Good reason for cautious excitement, I think!
