They are set to disrupt the payments industry. Payments Service Directive 2 (PSD2) and open API banking will ensure that banks invest significantly more into digital. They will require banks to open up their infrastructure to third party service providers.

Differentiation is difficult in the financial services and banking world. And arguably, until the advent of the banking crisis, new market entrants and competition driving regulation, the industry has quite honestly taken customers for granted. With customer churn at a low level of around 4% per annum, the client’s apathy to explore the market is not surprising.

The recent instruction by the Competition and Markets Authority to banks on capping unarranged overdraft fees should come as no surprise. According to the banking regulator this will improve competition in the sector, whilst ensuring that customers get a better deal. Further, the BBC highlights that banks must operate transparently to create customer stickiness and demonstrate how they compare to others.