The ‘fintech effect’ – prioritizing financial well-being

Our new Ratings Report finds change taking place in the banking sector, which is showing signs of putting financial well-being of customers at the heart of its products.

Since the financial crisis, we have seen a constant flood of “doom and gloom” headlines about UK banking and the need for the sector to focus on its most important capital stock – its customers. Our new Ratings Report finds a real step change taking place in the banking sector, which is showing signs of putting the financial well-being of customers more and more at the heart of its products.

Through a comprehensive review process, rating 76 financial products on how well they promote financial well-being of customers, we have found that fintech innovators have driven up standards in customer control and experience since our last Ratings Report was published in 2013. In fact, the industry may have reached a tipping point in this regard, with large banks now also beginning to follow suit: over the last three years, we have recorded an increase of 57% in our ratings of current and savings accounts; products which now include more features that put customers in control of their money, such as the 45% of analysed current accounts which can tag expenditure according to different categories such as eating out, petrol or groceries.

Despite the many improvements, progress amongst credit card issuers has slowed in the last three years, due in part to the fact that many providers are not embracing the digital banking software technology available as readily as the rest of the industry.

There is still a lot of work to be done in the sector. It is time for all providers to join the party and to use the current momentum to change products for the good of customers. For almost a decade, we at the Fairbanking Foundation have been working with financial institutions to create products that prioritise financial well-being and many products have already received a Fairbanking Mark, which certifies that they are designed to actively help the financial control of customers. It is an opportunity for financial institutions to further build the much-needed trust with their most important capital sock – their customers.

The Ratings Report 2017 was published on the 15th of February. It analyses 76 products in 8 product categories: current accounts (with and without overdraft), savings accounts, credit cards and personal loans, while mortgages, children’s savings and student current accounts are evaluated for the very first time.

Subscribe to our newsletter

Top stories -

Press releases -

ieDigital launches game-changer mobile app for banks

In this global-first launch, the UK’s leading digital banking solutions provider, ieDigital is launching a brand new...

Read more
News Opinion -

Responsibilities of an executive sponsor in digital culture

As we look deeper into the role of an executive sponsor, here we are discussing seven significant responsibilities of an...

Read more
Banking Technology -

How to Run Better Digital Banking Projects: Taking the right...

“Can we unlearn the damaging approach to such projects that have too much scope, too much complexity and are designed...

Read more