Banks can take from Telecoms playbook to compete as a digital only bank

Telecoms and Banks both operate behind regulatory barriers and both are being impacted by digital disruption.

Telecoms went through this disruption before the Banks, so it is worth seeing if any strategies from Telecoms can be used by Banks.

One strategy is what we see from two major European carriers. France Telecom created the Orange brand to go after global markets and Deutsche Telecom created T- Mobile to do the same thing. In their home markets, they are the regulated incumbent. In foreign markets they are the disruptive challenger.

Banks could do the same thing using Programmable Bank platforms (or put an API on top of their internal systems if they have already done a conversion to a real time back office).

This will ramp up competitive intensity and be good for consumer choice. The resources of a big bank allied to a digital only startup model can be very powerful.


  1. […] The Great Fintech Rebundling can only be done by a fully licensed/regulated entity aka a Bank. It could be a start-up bank or it could be a big existing bank moving into foreign markets (using the Telecoms playbook that we explained in this post). […]

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.