Intel Report Digital Banking - Flipbook - Page 6
A Sampling of Niche Digital Banks
gig workers or Black Americans. There’s a digital bank for
“It’s part of a bigger societal trend,” says Liz High, execu-
Muslims and one for environmentalists. There’s a digital
tive vice president of Nymbus Labs, which helps companies
bank for doctors and another one for young doctors. There’s
develop digital niche banks. “Your choices used to be the
a digital bank for venture capitalists and one for freelancers.
big bank your parents used, or your local community bank
There’s one for the LGBTQ community. In the modern age,
or credit union; banks were just banks. It started with mil-
it’s not so much the demographics that matter; it’s identity.
lennials, and it’s super-amplified with Gen Z. You trust and
“In some cases, these are big segments of the market, but
they’re not mass market,” says consulting firm Cornerstone
Advisors’ Director of Research Ron Shevlin. “Nor are they
geographically focused.”
They don’t necessarily want everyone. The bank for doctors
doesn’t need all doctors, Shevlin says. In some cases, they
want a deeper relationship with the customers they do have.
4 | FINXTECH INTELLIGENCE REPORT
choose companies that you relate to emotionally and reflect
your values. Banks are no exception. It is why we are seeing
a significant growth in niche, affinity-based financial services
businesses.”
When branches no longer have the same value, strong brands
may fill the gap. Brand is not so much about marketing
spend and logos. It’s about the experience that customers
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