Banking solutions need to undergo some big changes. There is a growing demand for digital-only solutions all over the world. Citizens Financial Group acknowledges this shift and is ensuring they go with the flow. It is another example of a traditional lender launching a standalone digital spin-off.
Various banks are catering to their digital-only clients That is often much easier said than done. Although most banks offer digital services, there is still plenty of work to be done. Citizens Financial Group is tackling this issue head-on. Launching a standalone digital bank is an intriguing solution to this problem.
Digital-only is the Right Way Forward
The company will provide FDIC-insured online savings and CD accounts to consumers across the US. This is a big step forward from the non-digital-only venture. That institution only provides access to clients across eleven states. A digital-only solution has a wider reach by default, which is an option worth exploring for all banks.
Citizens Access president John Rosenfeld comments:
“Over the last several years, direct bank deposits have grown six times faster than deposits at traditional banks as consumers have sought innovative new ways to save money. To address these evolving customer needs, we designed Citizens Access to provide an exceptional digital experience where every task is intuitive and easily accomplished, even on a mobile phone.”
It is not the first time a traditional bank goes the digital-only route. JPMorgan Chase took a similar approach not too long ago. Their Finn venture is designed to target millennials. Other firms around the world have unveiled similar plans to cater to a new crowd altogether. Whether or not these ventures will be successful, remains unclear.