Featured Letter: Technology is what tips the scales for challenger banks

Published on November 23rd, 2021 📆 | 6439 Views ⚑

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Letter: Technology is what tips the scales for challenger banks

Helen Thomas lands some good arguments in her column “Lack of challenger bank consolidation is a problem” (Opinion, November 19) although I disagree with some of her conclusions. Most notably she states: “The need to invest in digital arguably adds to the benefits of scale, in a sector where everything from data to compliance costs already favour being big.”

The very best businesses have scale through technology but the high street banks of today have simply achieved scale through antiquated branches and outdated computer systems — just the opposite of the new digital players, such as Starling, that are smart scaling with the very latest technology.

The big banks are fully aware that their scale no longer differentiates them and that updating their technology and culture to meet the demands of digital consumers is a critical project, yet it’s one they seem unwilling to start.

Anne Boden
Founder and Chief Executive
Starling Bank, London EC2, UK

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