02 Apr 2024
by Amardeep Singh Juneja

The Deposits Race

In today's fast-paced financial landscape, an intense rivalry is brewing between traditional banks and fintech companies. Everyone's curious to know who will come out on top. To fully understand this situation, we must identify the strengths and weaknesses of both parties and remember that the ultimate goal is to provide reliable and secure financial services for customers.

Undoubtedly, the competition for deposits has intensified in recent years, fueled by the drive for innovation and the desire to offer consumers more choices on their financial journeys. To better understand the current landscape, let's examine the pros and cons of banks and fintech companies.

Banks' response

Banks have long been a cornerstone of the financial sector, boasting stability and a well-established reputation. Countless individuals and businesses have relied upon their vast services, including checking and savings accounts, loans and investment options. Furthermore, the extensive physical branch networks maintained by banks offer a convenient option for customers who prefer face-to-face interactions.

However, outdated systems and bureaucratic processes can sometimes hinder traditional banks. These obstacles may impede their ability to swiftly adapt to customers' evolving needs and preferences. In addition, some banks may have higher fees and less competitive interest rates on deposits than their fintech counterparts. Moreover, the eligibility criteria for loans and other financial products that banks offer may be more stringent, limiting access for specific individuals.

The rise of Fintech

On the other side of the spectrum, fintech companies leverage technology to provide innovative and user-friendly financial solutions. They often offer lower fees, higher interest rates on deposits and more flexible loan terms, all of which can appeal to customers seeking a more cost-effective and customizable banking experience. Fintech platforms, accessible through mobile apps and websites, provide a seamless and convenient user interface catering to the needs of a tech-savvy generation. These companies also have the potential to reach underserved populations, extending financial services to those who may have limited access to traditional banks.

However, it's essential to acknowledge that fintech companies may encounter challenges related to trust and brand recognition, as they need to gain the long-standing presence and reputation the more established banks enjoy. Privacy and security concerns regarding handling financial information on online platforms may also raise doubts in the minds of some consumers. Additionally, the ever-evolving regulatory landscape can pose hurdles for fintech start-ups navigating the complex framework surrounding financial regulations.

Banks possess the advantage of an existing customer base and the trust and familiarity associated with their brand. However, fintech companies are rapidly gaining ground, particularly among younger generations who prioritize convenience, transparency and personalized services in their banking experience.

A harmonious coexistence and collaboration between traditional banks and fintech companies will likely emerge. Banks increasingly embrace fintech solutions and forge partnerships with start-ups to enhance their service offerings. Conversely, fintech companies may explore avenues such as obtaining banking licenses or partnering with traditional banks to leverage their infrastructure and regulatory compliance.


Amidst this competition, it is essential to ensure that consumers can access secure and dependable financial services. Regulators play a pivotal role in striking a delicate balance between fostering innovation and upholding consumer protection. By nurturing an environment that encourages the best of both banks and fintech companies, we can create a financial ecosystem that benefits all stakeholders and adapts to customers' ever-changing needs.

As we consider the ultimate winner in this deposit race, it is evident that the outcome remains uncertain.

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Andy Thornley

Andy Thornley

Head of Financial Services, techUK

Andy joined techUK in August 2022 as Head of Programme – Financial Services. His role includes leading techUK’s work in building a greater understanding of the 'technological art of the possible' in order to apply it to the reform and evolution of financial systems.

Before joining techUK, Andy worked for a number of other bodies in the financial services sector, including the British Insurance Brokers’ Association, where in addition to owning policy and public affairs, he was also responsible for fostering InsurTech in the sector.

Andy has a degree in Human Biology and holds a Certificate in Insurance (Cert CII) qualification from the Chartered Insurance Institute. Outside of work, Andy is an avid cyclist and races competitively both on the road as well as the velodrome.
[email protected]

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Ella Gago-Brookes

Team Assistant, Markets, techUK

Ella joined techUK in November 2023 as a Markets Team Assistant, supporting the Justice and Emergency Services, Central Government and Financial Services Programmes.  

Before joining the team, she was working at the Magistrates' Courts in legal administration and graduated from the University of Liverpool in 2022.  Ella attained an undergraduate degree in History and Politics, and a master's degree in International Relations and Security Studies, with a particular interest in studying asylum rights and gendered violence.  

In her spare time she enjoys going to the gym, watching true crime documentaries, travelling, and making her best attempts to become a better cook.  

[email protected]

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Amardeep Singh Juneja

Amardeep Singh Juneja

Sr Sales Director, HCL Tech