Financials

<p style="text-align: justify;"><span class="TextRun BCX0 SCXW14689543" lang="EN-IN" xml:lang="EN-IN" data-contrast="auto"><span class="NormalTextRun BCX0 SCXW14689543">When will Challenger Banking muscle start flexing within the Corporate and&nbsp;</span><span class="NormalTextRun BCX0 SCXW14689543">I</span><span class="NormalTextRun BCX0 SCXW14689543">nstitutional space in the UK?</span></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="TextRun BCX0 SCXW14689543" lang="EN-IN" xml:lang="EN-IN" data-contrast="auto"><span class="NormalTextRun BCX0 SCXW14689543">Since 2015, with the dawn of&nbsp;</span><span class="NormalTextRun SpellingErrorV2 BCX0 SCXW14689543">Fintechs</span><span class="NormalTextRun BCX0 SCXW14689543">, we have witnessed hives of activity in the&nbsp;</span><span class="NormalTextRun BCX0 SCXW14689543">high-volume</span><span class="NormalTextRun BCX0 SCXW14689543">&nbsp;customer segments.</span></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="TextRun BCX0 SCXW14689543" lang="EN-IN" xml:lang="EN-IN" data-contrast="auto"><span class="NormalTextRun BCX0 SCXW14689543">Around 80 in the retail, wealth,&nbsp;</span><span class="NormalTextRun BCX0 SCXW14689543">mortgage</span><span class="NormalTextRun BCX0 SCXW14689543">&nbsp;and SME space so far and we have around 15M+ customers across this space.</span></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="TextRun BCX0 SCXW14689543" lang="EN-IN" xml:lang="EN-IN" data-contrast="auto"><span class="NormalTextRun BCX0 SCXW14689543">However most have not moved their salary to these account</span><span class="NormalTextRun BCX0 SCXW14689543">s</span><span class="NormalTextRun BCX0 SCXW14689543">. Many just use it as a wallet and maintain their main bank accounts with one of the incumbents. </span></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="TextRun BCX0 SCXW14689543" lang="EN-IN" xml:lang="EN-IN" data-contrast="auto"><span class="NormalTextRun BCX0 SCXW14689543">Is it the Trust, scale and channel capability of incumbents that continues to remain a differentiator?</span></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="TextRun BCX0 SCXW14689543" lang="EN-IN" xml:lang="EN-IN" data-contrast="auto"><span class="NormalTextRun ContextualSpellingAndGrammarErrorV2 BCX0 SCXW14689543">So</span><span class="NormalTextRun BCX0 SCXW14689543">&nbsp;</span><span class="NormalTextRun BCX0 SCXW14689543">what&rsquo;s</span><span class="NormalTextRun BCX0 SCXW14689543">&nbsp;next &ndash; Can we see more within these segments? More entrants? More innovation? Further extension of services being provided?</span></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="TextRun BCX0 SCXW14689543" lang="EN-IN" xml:lang="EN-IN" data-contrast="auto"><span class="NormalTextRun BCX0 SCXW14689543">And what about the segments beyond Retail, Wealth and SME that have not yet been tapped by these players? The Corporates and beyond.</span></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="TextRun BCX0 SCXW14689543" lang="EN-IN" xml:lang="EN-IN" data-contrast="auto"><span class="NormalTextRun BCX0 SCXW14689543">Can we expect to see new players provide services for Mid corps next? </span></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="TextRun BCX0 SCXW14689543" lang="EN-IN" xml:lang="EN-IN" data-contrast="auto"><span class="NormalTextRun BCX0 SCXW14689543">Surely a more complex sector to play within, but the opportunity exists and is it fair to say that the next few years will see existing or new players get active in this space?</span></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="TextRun BCX0 SCXW14689543" lang="EN-IN" xml:lang="EN-IN" data-contrast="auto"><span class="NormalTextRun BCX0 SCXW14689543">And yes, we have more accelerators now than we did few years ago.</span></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="TextRun BCX0 SCXW14689543" lang="EN-IN" xml:lang="EN-IN" data-contrast="auto"><span class="NormalTextRun BCX0 SCXW14689543">For example - We now have a matured range of innovative utility providers, for customer onboarding, KYC, payments etc, who are essentially service providers to challenger banks,&nbsp;</span><span class="NormalTextRun SpellingErrorV2 BCX0 SCXW14689543">Fintechs</span><span class="NormalTextRun BCX0 SCXW14689543">&nbsp;and incumbent banks. </span></span><span class="LineBreakBlob BlobObject DragDrop BCX0 SCXW14689543"><span class="BCX0 SCXW14689543">&nbsp;</span><br class="BCX0 SCXW14689543" /></span><span class="TextRun BCX0 SCXW14689543" lang="EN-IN" xml:lang="EN-IN" data-contrast="auto"><span class="NormalTextRun BCX0 SCXW14689543">These can help accelerate the process.</span></span><span class="EOP BCX0 SCXW14689543" data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}">&nbsp;</span></p><p><img src="https://kradminasset.s3.ap-south-1.amazonaws.com/ExpertViews/Sameer.png.jpg" alt="" width="600" height="337" /></p><p><span class="TextRun SCXW99847969 BCX0" lang="EN-IN" xml:lang="EN-IN" data-contrast="auto"><span class="NormalTextRun SCXW99847969 BCX0">So, will we see challenger banks compete with the large banks, considering the scale, trust and stake that exists with corporates and beyond? Or is it more likely that they will continue to increase collaboration instead and innovate together within these larger customer segments?</span></span></p>