A banking crisis occurred in the UK banking industry between 2007 and 2010.
The UK government supported banks with 1,162bn Euros in a bid to ensure the industry’s financial stability. However, this did not augur well with a lot of consumers who were angry that taxpayers’ monies were being used to rescue the same prominent banks that had exposed them to risky lending and credit borrowing.
As the years went by, mainstream banks even went on to exclude the same taxpayers whose funds were used to save them, by creating products that are out of their reach. This change by the banks meant that people who faced bankruptcy or those who had poor credit records or couldn’t present proof of address couldn’t open standard bank accounts that met their needs.
The move by the big banks created an avenue for the entrance of alternative banking solutions.
Enters the Banking Alternatives
In the past half of a decade, we have seen a massive growth of alternative banking options that has catered to the needs of financially excluded customers who want to handle their banking needs better, as well as those who just want to leave traditional banking institutions.
Some of these popular alternatives are neo banks, e-money accounts, and challenger banks, and they have brought significant change to the industry.
How are the new-age banking alternatives different?
The first difference between the new banking service providers is that they have more functionality on offer compared to the traditional banks.
They also leverage more technological initiatives and added benefits like rewards for their clients and extra money management tools.
They are also not resting on their oars. Instead, they continue to upgrade and develop innovative solutions to improve customer satisfaction. Their efforts are yielding positive results as we see that the UK prepaid industry is experiencing a 27% growth year-on-year.
Prepaid Accounts, Debit Cards, and bankless banking
With lots of fintech banking solutions throughout the UK, people who don’t meet up to the standards of the traditional banks, probably because of poor credit scores or an absence of proof of address can explore several options to set up accounts.
These Neo and challenger banks have changed the game so much that their customers can even engage in banking without an actual bank.
Suits Me® Delivers Alternative Banking Solutions
Suits Me® is a game changer and an alternative banking solution with a mission to close the gap between bank and client and put an end to financial exclusion.
At Suits Me®, they deliver functionality and top-notch service that rivals traditional current accounts without recourse to their financial or personal background and circumstances.
Their banking services are also free of all hidden costs and fees as we thrive on transparency in our dealings.
Their prepaid accounts have a contactless debit card, a mobile banking application, as well as online banking where you can manage your money safely. We also have cashback reward programmes for our clients to keep them happy.
And again thank you for reading our article.