Overview

Financial institutions today are under tremendous pressure to reinvent themselves. Rapidly changing consumer needs, combined with ever‐faster technology adoption curves and evolving regulatory pressures, have created an urgent demand to reimagine the digital banking experience. This report identifies key features that are necessary for success in the changing world and outlines a new business model to align institutions to future priorities. This report builds on an analysis of four neobank models: GoBank, Moven, Serve, and Simple, with takeaways that can improve any institution’s competitive position in the shifting digital landscape. The types of customers these new
providers attract — younger, urbanite, and underbanked — will be examined. Finally, the report provides a series of best practices for future‐proofing financial organizations and retooling branch networks for profitable operations in a new era.

Primary Questions:

  • How should financial service providers organize for success in the coming years? Which new model provides for maximum flexibility for future needs?
  • What key features are needed to respond to the rapidly changing needs of consumers and the regulatory environment?
  • What are the main takeaways from neobanks such as GoBank, Moven, Serve, and Simple?
  • What are the major trends that will influence banking over the next seven years?
  • What segments of consumers do neobanks appeal to and why?

Companies Mentioned
Accenture, GreenDot, American Express, MasterCard, Apple, Mitek, BBVA Compass, Moven, HMO Harris, U.S. Bank, Google, and Walmart.

Press Release

Tech-Savvy Consumers put Pressure on Banks to Reimagine the Banking Experience

Methodology
  • A random‐sample panel of 3,225 respondents in a July 2014 online survey. 
  • A random‐sample panel of 3,492 respondents with mobile phones in a June 2012 online survey. 
  • A random‐sample panel of 3,180 respondents with mobile phones in a June 2011 online survey. 
  • A random‐sample panel of 6,000 respondents in a May 2014 online survey. 
  • A random‐sample panel of 5,038 respondents in a March 2013 online survey.