UNDERSTANDING CHALLENGER BANKS

Derek Grant

UNDERSTANDING CHALLENGER BANKS


Until more recently, the banking industry was one of tradition. As with almost every sector in modern society, the conventional banking world is being rivalled by digital alternatives. The rise of challenger banks and fully digital cloud-based banking solutions provide a new way to manage finances in an age driven by technology.

What is a challenger bank?

You’ve likely come across a challenger bank when browsing your smartphones app store or scrolling through social media. A challenger bank is a new way of banking, driven by technology and modern financial practice. Challenger banking solutions such as Tide or Starling Bank operate via web and mobile applications, and unlike traditional high street banks, their ‘shop front’ is exclusively online.

There is now a whopping 42 active challenger banks operating in the UK, with one in five consumers shifting to use these as their primary bank account. Challenger banks have risen in popularity due to their simplistic and hassle-free interface. Customer can obtain an account in a few simple clicks, manage their finances from an all-in-one app and benefit from exciting features such as budgeting tools and real-time spending analysis.

Are challenger banks safe?

Rest assured, challenger banks aren’t all that different from your standard high street bank when it comes to regulation and protection. Challenger banks are regulated and authorised by the UK Financial Regulator and awarded their bank status by the Prudential Regulation Authority. What’s more, they follow stringent identity verification procedures using facial recognition technology or even video to verify accounts.

Does MMG work with challenger banks?

Yes! We’re sure you know by now, but as a business, we’re a lover of all things digital, and we’ve been impressed by the ease and features that come with challenger banks. As a result, we’ve teamed up with Starling Bank and Tide to offer our clients exclusive benefits.

MMG clients can now open a business current account with Tide and receive one year of free transactions. What’s more, if you complete a registration for an account by the 30th of June 2021 and successfully open an account, you will receive £50 on Tide!

Trusted by over 300,000 UK businesses and with no monthly fees, annual fees, or credit checks required, there’s no risk in trying Tide out alongside your existing account. Click here to access MMG’s exclusive discount code and find out more about Tide.

If you’re interested in exploring Tide or Starling Bank for your business banking needs, don’t hesitate to get in touch with a member of our team. We’re here to support you.