SME News Q2 2018

SME NEWS / Q2 2018 9 UK Challenger Banks - Taking On High Street Heavyweights For many – opting for a lesser known, mobile bank would be deemed a risk, and whether they are especially pleased with their existing banking set up or not, they would sooner stick than twist. We may also see mergers as smaller, younger banks seek to combine forces to aid in breaking through to the masses. Earlier this month we heard news of a potential merge between Virgin Money and CYBG as they aimed to become the UK’s ‘leading challenger bank’, however even with combined forces, what results will still be miles behind the leading banks in terms of user base. The potential and scope for this new age of banking to succeed is undeniable. Technology, as it does across so many sectors, holds the key to whether we will see real development and change in the banking sector, or whether the traditional ‘big four’ banks will continue to dominate. Whether trust amongst the public in challenger banks can grow to an extent that a real dent can be put in the userbase of the likes of Lloyds, HSBC, Barclays etc remains to be seen. As does the questions of whether the aforementioned big players have the ability to keep up with the ever-changing banking landscape. What does seem a certainty is the benefits and positives users can gain by opting for a mobile bank.