In the current discussion of success of start-ups and the reasons for this, a lot of noise is in the air. There are a lot of reasons which make it attractive to use or at least try out new products. But one trend I really cannot understand - it’s the financial mothering.
I don’t know if this term is really valid and used, but it describes what I have in mind. More and more this financial startups come up with a service that brings clearness and order in one’s money thing. These companies sort every expense to a certain category and give back a report showing for what the money was spent. Then some of this companies let the client define ranges and stop scenarios which let the application warn the client, that he exceeds his limit. Some offer a system of different “money pots”, that the client can sort actively his money to saving, pension or spending funds. And some of this companies ask friendly their clients if they do not want to save more and offer also products for saving.
Privacy and independence?
Maybe this is really a question of time or age but I would really be not amused if my bank comes around and tries to support me in this way. And even more, I know what I spend, where I spent and if I save enough for whatever purposes. It is my independent will to decide that today I save and tomorrow I spend and no one knows that. What will be the next step, by opening an account you have to agree on that the bank informs your wife or some authorities from the national addiction prevention in case someone is not saving enough?
Success by nudging
If the world is going in this direction then banks do really need to fear this kind of competition. A lot of aspects we can talk another blog are really threatening but can be solved with money, but if clients need their personal financial watchdog and give up privacy it is a complete different game. Then competition is no longer Fintechs, it is every shop, system or network staring with Amazon, going via Google or Microsoft to Facebook - it could literally be every company that organizes ones financial belonging. That’s freaky…..
Yours K-Street6 Team