Digital banking is pushing financial services to catch up with society’s demand for representation, as underrepresented customers increasingly look for new places to put their money.
Banks have had a long reputation of not being “for everyone,” but the evolution of digital banking is pushing financial services to catch up with society’s demand for representation. A proliferation of challenger banks by-and-for the underrepresented — affinity banks — are closing this gap, and that’s putting pressure on incumbents to transform how they operate.
Expectations have never been higher for financial institutions to address and improve inequity issues. The shift from incumbent banks to digital challengers will continue as underrepresented groups look for new places to put their money.
Incumbent banks risk losing market share and brand strength as shared values become the influencing factor in selecting products and services. This requires banks to be proactive in re-aligning brand, purpose, and profit to create newly inclusive offerings that benefit their customers and communities, aspiring to what can be called a “higher bottom line.”