An interesting 'break-in' into Irish banking market via Number26 which uses:
- Fintech platform; and
- German license
to break the Central Bank of Ireland-led freeze on new entrants into the banking market here.
Details are here: http://techcrunch.com/2015/12/02/number26-launches-its-bank-of-the-future-in-6-new-countries/. Surprisingly low margin operation based on fees from transactions, rather than on direct customer charges. Presumably, accounts are insured by German system and are free from the Irish Government indirect tax extraction schemes, such as card duties etc... One, of course, will have to be compliant on Irish DIRT.
Of course, Fintech offers plenty of disruption potential in the sector that is inhabited by technology dinosaurs. Still, for all its promise, Fintech is yet to:
- Achieve a significant breakthrough into traditional banking and insurance services (beyond aggregators and price optimising platforms) and
- Deliver a viable (financially) margins model.
These two points mean that to achieve scale, Fintech offers today need deep pockets and customer bases of more traditional services providers, as I describe during this discussion: http://trueeconomics.blogspot.ie/2015/10/161015-financegoogle-2015.html.