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In recent years we have written and spoke on the potential for retail networks such as Google, Amazon, PayPal, Facebook, etc to gradually enter the financial services industry in broader terms than disintermediating payments. Revenue from payments are being cannibalized already which is the life blood for FI's.

If we look at these network giants they have large, loyal customer bases across all ages groups and socio-economic segments. Like you some of us are regular shoppers on Amazon for an extensive array of services and products. Others are on their social networks more than once a day and the lists of followers continue to grow. Consequently these online companies have big data banks which help them target market millions within their subscribers-what great equity base for a  broader range of offerings including financial services!

This week American Banker had a very specific article of interest entitled, "Why are Amazon, PayPal meeting with bank regulators?".  The purpose would not surprise you!

This competitive possibility should be taken seriously. How is your competitive readiness? This question has to be addressed objectively without comfortable blinders and using a clinical analysis process. Every FI has customers dealing with the online networks and, in fact, loyalty could be in their favour.

Hopefully your competitive intelligence radar covers all future and emerging possibilities and not subjective summaries of known players. Also your digital game must be in top form to counter the obvious disintermediation on the horizon.

Pat Palmer | Saturday, September 30, 2017 | Trackbacks (0) | Permalink


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