Report: Are Online Banks' Days Numbered? - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Report: Are Online Banks' Days Numbered?

In the race for online survival in the financial services arena, traditional banks with online channels will stay in business longer and acquire more customers than online-only banks, brokerages, and insurance companies, according to a recent report by IT services firm Extraprise.

In predicting the future of the online financial service market for consumers, the report, "The E-Financial Services Shakeout," predicts that financial institutions operating strictly online eventually will fold or become acquisition targets. That's because people tend to be more familiar with the offline presence of traditional banks, says David Hybels, an Extraprise adviser who co-authored the report. Adding an online channel, Hybels says, gives people another way to access accounts opened in the offline world.

The picture for the online-only banks is not nearly so rosy. "They're not going to survive," Hybels says. "People need advice and the security of a physical branch." Even partnering with brick-and-mortar companies, as Internet-based Juniper Bank did with Mail Boxes Etc., may not result in sufficient staying power. According to the report, "Consumers might find it awkward to bank at Mail Boxes Etc."

Extraprise predicts there will be a shakeout among online financial services companies, and that only a few of the larger, diversified firms with a physical component will survive.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
Remote Work Tops SF, NYC for Most High-Paying Job Openings
Jessica Davis, Senior Editor, Enterprise Apps,  7/20/2021
Slideshows
Blockchain Gets Real Across Industries
Lisa Morgan, Freelance Writer,  7/22/2021
Commentary
Seeking a Competitive Edge vs. Chasing Savings in the Cloud
Joao-Pierre S. Ruth, Senior Writer,  7/19/2021
Register for InformationWeek Newsletters
Video
Current Issue
Monitoring Critical Cloud Workloads Report
In this report, our experts will discuss how to advance your ability to monitor critical workloads as they move about the various cloud platforms in your company.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll