News & Views - Savantor

Opening the flood gates?

Sunday, 16 June 2019

Facebook has announced its intention to launch a digital currency, Libra, to rival traditional banking and enable those without a bank account to make secure payments. 

This prompted a warning from the Chief Executive of Clydesdale and Yorkshire Banking Group for the banking sector to be ready for an onslaught from the tech company giants.

For some time, there has been the challenge within the banking industry to traditional banks from digital challenger banks, such as Monzo and Starling. These app-based digital banks have proved particularly popular amongst younger generations for their ease of use. Lacking the overheads of running a bank branch system and able to focus on key service offerings as opposed to the full spectrum of financial services, the challenger banks have been able to pose a strong challenge to mainstream banks.

Moreover, from April next year the traditional banks are to lose a major income stream with a radical overhaul of overdraft charges imposed by the FCA, whereby a number of ‘hidden’ fees and fees relating to unauthorised lending will be abolished. 

It is probably not a surprise to many that the tech giants are beginning to encroach into banking territory. The success of this infiltration has until now seemed more likely to be achieved by stealth involving a number of different initiatives, such Apple and Google Pay and the Amazon checking account, with differing success rates.

However the recent announcement by Facebook seems to be a more substantial challenge.

Whilst the immediate concerns that spring to mind with Facebook are trust and data privacy, especially with the company’s reputation to date in these areas, nevertheless Facebook has access to substantial funds and has gained the backing of some influential partners including MasterCard, Visa, PayPal and Uber and Booking.com. The company also has 2.3 billion active monthly users as potential customers. 

Whether Facebook is successful or not with its proposals for a new digital currency, nevertheless the announcement may open the floodgates to other similar initiatives launched by its rivals. The success or otherwise of the initiative is likely to have significant long-term implications on both the traditional banking sector and the banking sector in general.

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Credit Card Launch

"Savantor's knowledge and experience were the key differentiators in selecting them and they contributed greatly to the success of the product launch and the effectiveness of the ongoing operational service."

Toine Schepers, Operations Director - Primeline - The Netherlands

Credit Card Migration and Operational Support

"The bank has undergone significant transformation of its card business on both the issuing and acquiring sides. One business partner we have looked to for support in the areas of strategy, major project leadership, management analysis and ongoing business support is Savantor. The Savantor team has contributed to our success as we have leveraged their deep industry knowledge and broad range of operational skills."

Sean Sheehan, Service Management Director - Bank of Ireland

Platform Selection & RFP Management

"OP-Pohjola Group has used Savantor in both acquiring and issuing for platform/service provider research, RFI/RFP processes and subsequent contract negotiations. Savantor's approach and commitment have always been very professional and transparent. They have been of great help for the company in providing us important insights and background information beyond vendors sales speeches."

Kai Lindstrom, Head of Acquiring - OP-Services Ltd - Finland

Commercial Card Migration

"Execution at its best. We're delighted that this project has been truly outstanding and received an award from 'The Banker'. Savantor provided crucial expertise that helped us keep all our promises in terms of delivery. The scheduling, planning and control regime throughout was excellent."

Chris Mason, Director - Commercial Cards EMEA - Citi - UK

Interchange Review

"Savantor did a superb job in confirming what we believed was an area of weakness. The detail we now have will enable us to agree internally what we need to do to improve structure, control and income. Nationwide management were very impressed with the quality of the Savantor team."

Adam Slater, Senior Manager - Banking - Nationwide Building Society - UK

Moneris Solutions

"Savantor did an outstanding job of the review and I received nothing but positive feedback on the interaction with our management team."

Jeff Guthri, COO - Moneris Solutions - Canada

New Payments Initiative

"In moving our new initiative into reality, we required specialist payments knowledge and forward thinking in the retail sector. Savantor supplied this and provided very effective guidance throughout. We enjoyed working with them."

Sophie High, Head of Innovation Delivery - Cancer Research UK

Complex Multi-Country Migration

"This complex migration, undertaken simultaneously in Spain and Portugal, has been a complete success. Savantor has provided us with excellent support for over 3 years, both in the original business transformation programme and now this double migration. We value their open and honest approach to business, and of course the expertise that they bring."

Ricardo Gomez, Director, Operations & Technology - WiZink Bank – Spain & Portugal

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.