Once regarded as pioneers of innovative banking solutions, most traditional UK banks are now struggling to attract new clients. With sudden closures of local branches and ATM booths, many big UK banks are even struggling to hold onto their previously loyal customer bases. They are not only plagued by their old ways of doing things but also a lack of technical expertise and willingness to respond to fintech innovations. Some relatively new fintech banks, on the other hand, are thriving in the current circumstances.
As reported by the Government of the UK, fintech is one the country’s fastest-growing financial service sectors. In the past year alone, the sector has attracted over four billion investments. Some international banks have also been offering their services in the UK, which has become even more important since Brexit.
So, in this article, let’s focus on some of the issues of the traditional UK banks. We will also discuss how they are falling behind in comparison with their fintech counterparts.
Inconvenient Service Offering
Traditional UK banks usually offer a host of financial services for different customers. In general, they offer personal and business banking solutions. They also offer wealth management solutions for their wealthy customers. Depending on the banks, these services differ in terms of features, facilities and costs. To avail of these services, you often have to visit a branch physically. You will also need to prepare and submit a relatively elaborate list of documents and wait for the confirmations.
In comparison, a modern international bank offers an effortless solution to banking. You can just fill out a form online, submit a digital copy of a valid photo ID, and your account will be approved. The process may include one or two other steps, but they tend to be as simple as opening a social media account or such.
Unnecessary Segregation of Services
While a traditional bank may offer more financial services than a fintech bank, they come in separate packages. For example, a business account holder in a traditional bank may get to use multiple currencies. A personal account holder won’t be able to do so. These banks are also not that accessible, with different ranges of minimum funds limiting the number of people eligible for a particular service. Guess what! These banks often charge more for all these segregated services.
Thankfully, many fintech banks are working tirelessly to offer a streamlined banking solution that is accessible. Some online banks don’t even need a deposit.
Accessibility of Trading Features
While most big UK banks offer wealth management services, they don’t usually allow their clients to trade in the financial markets themselves. These banks also charge a big percentage as commissions. A modern bank like Fineco offers an ingenious solution to investing and trading. You can just open an account and start trading in the financial markets from all around the globe. It is mostly free too!
Furthermore, if you want to learn about online trading and discover useful resources and articles, visit their Newsroom section and start trading like a pro!
