Helen Thomas gets some good arguments in her column “Lack of challenger bank consolidation is a problem” (Opinion, November 19), although I do not agree with some of her conclusions. In particular, she says: “The need to invest in digital is likely to add to the benefits of scale, in a sector where everything from data to compliance costs is already huge.”
The very best businesses scale through technology, but today’s main street banks have simply reached scale through outdated branches and outdated computer systems – just the opposite of the new digital players, such as Starling, which scale smartly with the very latest technology.
The big banks are fully aware that their scale no longer distinguishes them and that updating their technology and culture to meet the demands of digital consumers is a critical project, but it is one that they seem reluctant to do. to start.
Founder and CEO
Starling Bank, London EC2, United Kingdom