Traditional banks at risk of losing customers to Bigtech, challenger banks

More than 60 per cent of customers say they already use these products from BigTechs or "challenger banks" or are likely to do so in the next three years

With their highly customer-centric  offerings, BigTechs and “challenger banks” are making inroads into Gen Y and tech-savvy segments. Customers prefer financial products from BigTechs slightly more than those from “challenger banks”; three-fourths of the tech-savvy already use at least one financial product from a BigTech firm.

According to the Capgemini World Retail Banking Report (2019), in the near-term, retail banks will be the most vulnerable to losing last-mile customer mindshare to non-traditional players in payments, cards, and core banking accounts. More than 60 per cent of customers say they already use these products from BigTechs or “challenger banks” or are likely