Digital Natives will trust social media platforms over traditional banks, according to financial services professionals
London and New York, NY, September 29, 2014 – According to a global survey of banking executives carried out by RDC, the diligence technology company, nearly two-thirds (59%) of respondents believe that financial services offered by social media platforms and technology companies will be more trusted by Digital Natives than traditional banks.
The RDC survey also found that regulatory pressure is having a notable impact on the profitability and business activities of financial institutions globally:
- 96% of respondents agreed with the statement ‘Regulatory pressure in recent years has led to some financial institutions ceasing to provide services in certain higher risk jurisdictions’.
- 38% of financial institutions are opting not to expand their risk appetites over the next 12 months, and will not be entering new markets or providing new products.
“The current momentum in the FinTech sector, coupled with the belief that these companies will win the trust of younger consumers, should be spurring banks into innovating and expanding their market reach,” said Tom Obermaier, Chief Executive Officer of RDC. “Our survey indicates, however, that regulatory pressure may be hindering new product development and global expansion. RDC’s mission is to alleviate the burden of compliance while providing maximum protection from risk, creating a safe environment for our clients to grow their businesses.”
As financial institutions seek to manage or reduce the growing cost of compliance, the RDC survey found that shared services for Anti-Money Laundering (AML) and Know Your Customer (KYC) are increasingly seen as a viable and trusted option, with nearly three-quarters (71%) of respondents indicating they would feel confident in relying on such a service.
RDC is a true extension of your organization’s compliance efforts. Our solution is relied on by Fortune 100 companies across a range of industries and combines comprehensive data, a scalable platform, trained analysts and tailored analytics to provide precise risk alerts and ongoing monitoring for enhanced protection and performance. RDC is currently a portfolio company of Bain Capital & Goldman Sachs. To learn more about RDC visit: www.rdc.com.
Head of Marketing, International
T: +44 (0)20 7959 2245
M: +44 (0)7920 204 657