Virgin Money is a pretty interesting company to keep an eye on. They have some big plans to disrupt the financial sector moving forward. More specifically, the current plan is to establish a new digital challenger bank. With over 38 million GBP being spent, this effort has to pay off sooner or later.
Virgin Money wants to make a big impact in the SME market. Focusing on a data-driven and customer-centric digital bank makes a lot of sense in this regard. With the regulatory changes in the UK turning out rather positive there are new opportunities to explore. Even the introduction of PSD2 is considered to be a good thing altogether. Moreover, we have seen great success for challenger banks across the UK already.
A Big Move by Virgin Money
Thanks to a new country with 10x Future Technologies, the new digital bank will come to fruition soon. First of all, a digital core needs to be built to form the backbone of this challenger bank. This has been in development for quite some time now, but there’s more work to be done. Bringing together legacy systems in a secure network is a big challenge. So far, Virgin Money seems pleased with the progress being made.
The company comments on the situation as follows:
“The Virgin Money digital bank will be underpinned by next generation technology and architecture, offering customers a Universal Account that can be personalised to create a unique proposition tailored to individual needs. In addition to our current presence in the mortgage, credit card and retail deposit markets, the digital bank will allow us to expand into the current account and linked primary savings markets.”
If things go according to plan, Virgin Money can launch its virtual bank in late 2018. By broadening the customer appeal through SME and digital bank propositions, the company is embarking on an interesting mission. The UK retail banking sector is certainly ripe for disruption in many different ways. Whether or not Virgin Money will make a lasting impact, has yet to be determined.
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