Comparing banking to Tinder is fitting when you consider how Open Banking has commoditised financial services in Europe. 

It used to be that you chose a banking provider based on proximity, and that only financial institutions could sell financial products; but today, branchless fintechs, big tech, neobanks, and accounting platforms are all serious players, too. 

Dating apps are the free-market economy come to sex, and Open Banking is the free-market economy come to banking.

With this in mind - it’s probable that customers are going to shift to multiple short-term relationships, instead.

What we’ve learned from dating apps, is that when there’s a surplus of options, the whole system shifts towards a “hook-up mentality”. Where historically 15, 20, even 30-year banking relationships were the norm, in coming years we’re more likely to see customers engaging with several providers simultaneously, on a needs-by-needs basis.

Soaring deal activity in the challenger banking space and a superior customer experience makes these entrants seem like formidable competitors, but an attractive UX without a sustainable revenue model doesn’t scream long-term potential.

The firms who win the relationship battle require the following traits:

  1. Compatibility
  2. Trust
  3. Good will
  4. Surprise and delight