They see the big banks’ approach, built around lending out customers’ deposits at higher rates of interest, as costly. Other big players are expected to follow suit in response to new regulations forcing them to share their customer data with potential competitors. GROWING PAINSThe new banks’ branchless, digital proposition means they benefit from far lower costs. Nevertheless, digital player Revolut, with a 300 million pound valuation and 1.2 million users, believes it couldn’t achieve the scale it wants with marketplace money alone. Edward Firth, managing director, UK banks at analysts KBW, said big banks make such a good return on retail banking that the digital upstarts can halve it and still make enough profit.

Source: The Express Tribune December 22, 2017 12:45 UTC