Atom is UK’s first fully digital bank. In fact, Anthony Thomson who started the bank believes it is not a bank at all, and it is a data-driven company which has a banking license.
Banking in the UK was mostly dominated by banks such as HSBC, Barclays, RBS, and Lloyds. However, a number of startups are opening off late and Atom is one of them, which is completely online. Atom currently offers only savings account and with 2 percent interest, it is the highest in the market. All the banking features are expected to be launched this year. What is different about Atom and similar banks is that they are using data analytics to drive customers. Traditional banks give you the previous month’s statement whereas these so-called banks are using predictive analytics to give you the next months statement. Even, in the US there is a wave of such startups which are trying to disrupt the whole traditional banking system. The question that arises is what are the traditional banks going to do respond to such disruption? Or can we envision a future where we completely ditch our bank??
Banks, I feel are definitely responding by coming with their own apps but they are still lacking when it’s come to ease of use and the services they offer. The only option for such big banks is to acquire these startups, match them or slowly fade away. Depending on the action taken by these banks, the future of banking will be decided. I believe the day is not too far away when we decide to completely ditch our bank.
References:
https://wesh.uk/domain-name/why-2017-will-be-the-year-youll-finally-ditch-your-bank/