Challenger banking is a phenomenon attracting vast amounts of attention at the moment in fintech circles. In the UK alone, there are at least 25 new banking license applications currently under consideration for authorisation. The market, so unused to such disruption and momentum, is agog at the collection of innovative banking models on offer, all enabled by changing technology and new regulation such as PSD2.

The innovation which these new arrivals are introducing at a rapid pace is here to stay. This is largely driven by consumers who place a high value on the technical know-how and usability of their banks. In a recent Fujitsu survey, more than a third of European consumers said they would move from their current bank or insurer if they did not offer up-to-date technology

While it’s clear that not every new model will succeed, some challengers will emerge as realistic alternatives to high-street banks and gain commercial traction. Others will be sold and their technology will be acquired and adopted by existing banks or service providers.

A consistent theme amongst these emergent models is that mobile is at their core of business. While sometimes this is to the exclusion of every other channel, the challengers are nevertheless responding to a clear need expressed by consumers seeking banking services matching our increasingly mobile-driven lifestyles.

In this presentation, which we gave at the World Credit Union Conference in Belfast in July 2016, we look at this issue, the steps the banking community need to get right to engage with modern consumers and how to develop powerful mobile—based propositions that people actually want to use.