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 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

Platform Selection

"Savantor's support in our platform selection process has enabled us to sustain our profitability and positioning for the future. Their advice and guidance was essential to our decision-making."

Robert Lambert, Head of Cards Strategy - Permanent tsb bank - Ireland

Collections Transformation

"Savantor did an absolutely superb job for us on the Collections programme. The professionalism, hard work, courtesy and tenacity of their experts is a credit both to the individuals and to Savantor."

Peter O'Dea, Senior Manager - Collections Department - Permanent tsb bank - Ireland

Credit Risk Review for New Product Launch

"We needed expert help at short notice and Savantor were very impressive in their response and knowledge. The results were very clear and useful, enabling us to quickly make good progress on the next steps."

Sami Karhunen, Head of Business Intelligence and SME Sales - Point Transaction Systems Oy - Finland

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

Card Migration

"I was impressed by the speed with which the Savantor team were able to start delivering and as a team they have made a significant contribution to the success of the Programme."

Bjorn Niels, Programme Director - ABN AMRO Bank - The Netherland

Expert Witness

"After searching extensively for the required industry expert in a complex litigation, Savantor was identified to have the necessary industry knowledge and expertise on a range of complex issues. Savantor provided clear advice and was able to quickly hone in on the key issues, but most importantly, generating pragmatic winnable answers."

Gavin Ingram, General Counsel & VP Strategic Planning - Global Blue - Asia Pacific

Acquirer Risk Assessment

"The expertise provided by Savantor has greatly helped us evaluate our risk position and to take the right steps in managing our future risks. Strong, disciplined planning and an ongoing willingness to work closely with our staff played an enormous part in making this a very successful well-delivered project which will greatly help us in achieving our business goals."

Mark Healy, Chief Risk Officer - NEOVIA Financial - UK

Complex Cards Business Transformation

"This was a major business transformation that required us to build an excellent team made up of internal bank specialists, supported by external card business, technical and operations expertise. Savantor provided specialists from the local market and with international experience to fill a variety of important roles. The Savantor resourcing team are professional, reliable and good people to work with."

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

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.