Legacy organizations have been looking for ways to compete with nimble startups disrupting their respective categories. However, the secret sauce for these legacy giants might be in modernizing their product offering by blending traditional services with disruptive feature enhancements. JPMorgan is looking to disrupt the banking industry by building a mobile-first bank aimed at millennials dubbed Finn.
Finn which is an end-to-end mobile bank, recently rolled out nationwide. In addition to offering bread-and-butter checking and savings account functionality, it also offers services many firms in the personal finance startup space have built their businesses around.
With Finn, users can create specific rules that determine when money will be transferred from checking to savings. One rule, “Work Hard, Save Smarter,” puts aside a set amount of money on pay day. There’s also “the Limit Does Not Exist” which saves a predetermined amount of cash whenever a user spends over a certain amount on a purchase.
That raises the question: what do fintechs do when big banks decide to step on their turf?
Why it’s hot?
It’s not all about the new kid on the block. Industry giants can compete with startups and even pose greater threats to them by transforming their product offering to meet and exceed their targets’ needs.