Digital Banks Seen as Needing More Growth to Disrupt Industry
Dow Jones
20 hours ago
1356 ET - Digital banks such as Revolut and Monzo have the opportunity to gain market share from traditional banks, Morgan Stanley says in a note. The banks have been quick to grow deposits and accounts, the analysts say. However, incumbents continue to defend, and in some cases regain, market share. Some incumbents including JPMorgan and Santander have launched their own digital banks. True market disruption from digital banks requires very high rates, incumbent participation and regulatory pressure, the analysts say. Digital banks also have more room to grow in lending, particularly with mortgages.
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