Platinum Asset Management says virtual banks are flourishing

Platinum Asset Management says virtual banks are flourishing. This new league of competitors has become a disruptive force as legacy banks are left trapped in an outdated and costly model. A new generation of pure-play digital banks is emerging that greatly appeals to socially connected, digitally powered consumers. These nimble innovators are massive disrupters since they can build beachheads within small markets and quickly extend them outward. With no legacy woes and able to buy a cheap off-the-shelf banking system, a new digital-only bank can offer better loan and deposit rates. Two recent UK greenfield banks, Metro and Aldermore, set-up for between 10 and 15 million pounds. The real kicker though is by renting, rather than buying or licensing core technology, startups like Atom can get a full service bank up and running in months with no initial capital outlay. Read more on this trend here: (VIEW LINK)


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