Sanctions and PEP Screening for Challenger Banks and Fintechs

The landscape for banking services has changed beyond recognition in the last few years. The award of the first retail banking license for 100 years to Metro Bank in 2010, opened the flood gates, and since then ever more challenger banks and fintechs are disrupting the market.

Many challenger banks are targeting specific customer segments rather than being a one-stop-shop for all. Banks such as Starling and Monzo have targeted the smartphone generation whilst others have tailored their offerings to meet the requirements of small and mid-size enterprises (SMEs), who have sometime struggled to find the services they need from traditional banks.

The line between a bank and a fintech is often blurred. Some (for example Revolut) started out primarily as a currency exchange platform before offering more standard banking products such as current accounts. Other firms are more definitely at the fintech end of the spectrum such as SumUp, Klarna or ClearBank which offer alternative products and services.

Advanced technology developed by these new players makes it easier and faster for new customers to register and gain access to financial products. New technology and the race to innovate has accelerated the shift toward digital banking, with over 76% of all UK residents using internet banking in the first quarter of 2020

Leave a Comment

Your email address will not be published.