This week: ☁️ Rising from the cloud 🧐 Will Vipps strategy fail? 🤯 Are savings banks the new neo
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August 3 · Issue #21 · View online
A weekly summary of the latest news in our world of finance, design, and technology.
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This week: ☁️ Rising from the cloud 🧐 Will Vipps strategy fail? 🤯 Are savings banks the new neobanks? 😎 UX-interaction of the week
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https://www.visualcapitalist.com/massive-scale-of-cloud/
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As we’ve talked about before, Norway is among the top countries in the world on cashless payments. But when it comes to paying with our phones, we’re at the bottom with just 0,7%. The main reason? Vipps, which most of the largest banks in Norway are co-owners of, has long been working on a competing solution to Apple Pay and Google Pay. In June, they launched Vipps mobile payment in stores. This means that in Norway we now have two competing mobile payment standards: You can either pay with Apple/Google Pay with the NFC-chip on your phone or by scanning a QR code with your Vipps app. Simple enough, right? Not that fast! Only DNB, Sparebank1, and the Eika Alliance has decided to support Vipps mobile payments in stores. All other banks are still sitting on the sidelines, and awaiting consumer demand. Which means we need to create complex tables like this to understand which bank support which mobile payment solution:
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Kilde: Aftenposten
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We’re not talking about putting the user first when you see a table like this. Customers won’t care why banks won’t support Apple/Google Pay. They can’t beat the simplicity of paying without launching a separate app. This two-year-old article from Lucas Weldeghebriel from Shifter still accurately explains Vipps impossible Apple-situation, and why the Vipps-alliance banks have taken the wrong strategic choice. Another noteworthy strategic choice for Vipps is the launch of « sign in with Vipps.» This is a natural next step considering the merger with BankID, and the fragmented login-solutions we all experience daily. Eie Eiendomsmegling has implemented this when signing up for a showing of an apartment and experienced that over 80% chose to register with «sign in with Vipps» compared to manual input. We can always discuss if this was because of «Sign in with Vipps» was the default choice, or because people preferred it, but that’s another discussion. It will, none the less, be interesting to see how this pans out, in the long run, considering that Vipps also own BankID. You now need BankID to authenticate yourself in Vipps, and then you use Vipps to authenticate from thereon. Will customers be confused by Vipps being payments as well as authentication, or will they accept Vipps as a one-stop-shop for everything finance and authentication-related? As a side note, I’m also waiting for the first bank to withdraw from the Vipps cooperation once they experience Vipps cannibalizing their channels.
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Alf Gunnar Andersen, CEO in Horde, however, does not believe in future of the savings banks: «Over 100 banks operate in Norway. That each of them believe that they will “win” the battle for the customer touchpoint in a digital world is naive, to say the least.» Horde tried to cooperate with a few savings banks, but experienced that they mostly wanted to do everything inhouse, and experienced the decision-processes as slow. Christoffer Hernæs, CDO in Sbanken, argues that cooperation between banks and Fintechs takes time because of risk-assessments and security, etc. Banks have plenty of time, as they have the capital to be patient. In contrast, startups do not have the same funds, and that’s where the culture crash comes in.
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We read this report from Built for Mars, of how UK banks are doing customer support with interest. What got the most attention from us was, however, how Monzo is using push notifications to redirect you to specific pages of their app, while you’re on the phone with their customer service. This is something that has a huge potential for customer service in banks to f.ex. Prove your identity with biometrics (no more safety-questions), to diagnose problems, and more.
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