Bank­ing on longer-term pay-offs

Finweek English Edition - - Marketplace Simon Says -

Dis­cov­ery* has an­nounced de­tails of its “be­havioural” bank to be launched next year. The idea is that, much like Vi­tal­ity helps im­prove the fit­ness of sub­scribers, the same can be done with our fi­nan­cial “fit­ness”. Cer­tainly, this has worked with exercise, but I sus­pect it may be harder with fi­nan­cial mat­ters. I sus­pect that the peo­ple who sign up for the new bank will be those al­ready in de­cent fi­nan­cial shape, which de­feats the pur­pose. Fur­ther, this will be a trans­ac­tion bank only, no credit on of­fer – so you’ll need a sec­ond bank if you want any credit. I like the con­cept and in time we’ll see whether it pays off. Adrian Gore has stated that it takes some five years to get a new prod­uct up to scale, so we’ll only re­ally start see­ing re­sults in a num­ber of years.

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