The Banking Competition Turns White Hot: How Will You Fight Off the Non- and Neo-Banks?
by Robert McGarvey
Just when you thought business couldn’t get tougher—most credit unions now are wrestling with collapsing loan revenues as interest rates continue to tumble. And yet, more non-bank competitors enter the fray.
Sure, some experts shrug them off. The ABA Banking Journal, in a recent story about the rise of non-banks, features this quotation: “‘I saw the other day that I can get a bank account with T-Mobile or something, but I don’t want to bank with T-Mobile—I just can’t imagine that there will be millions and millions of American that are,’ remarks Canapi Ventures partner Walker Forehand.”
I can imagine it and my advice to you is do likewise. You do not have to open a T-Mobile banking account. But work at understanding why some of your members will.
And it’s not just T-Mobile. Suddenly, everybody from neo bank Lili—featured in this CU2.0 write up—and of course Apple (with Apple Pay and Apple Card) is plunging into banking.