Many high-street banks are failing to adapt to the changing nature to the consumer.While most now offer an app they rarely allow users to do more than check their savings account and make transfers.However, with consumers, especially younger, so-called millennials, increasingly accessing all kinds of services through their smartphones, fintech startups and challenger banks are rushing in to try and offer banking more attuned to what the consumer wants.
Atom Bank last year took on USD128m from investors including Spanish bank BBVA.
Yet to launch its mobile-only bank, the firm is now has made its first acquisition in finance-focused design and development company Grasp.
Based in the north of England, the price paid by Atom Bank, which previously worked with the company is undisclosed.
More acquisitions are expected in the fintech space this year as partnerships between the startups, banks and other startups blossom into buyouts, but Atom Bank’s purchase of a design house is more telling of why traditional banks are expected to undergo such serious disruption.
Brochures and face-to-face meeting with financial advisors are time consuming and costly, finding new ways to educate millennials about financial services will become a must for banks.