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How Can Banks Survive the Digital Wallet War Against GAFA?

Facebook-owned messaging platform WhatsApp has recently launched its payment feature in India, allowing the country’s 200 million users to transfer money through the application. Today, India is one of the biggest markets for WhatsApp.

Already having been threatened by the disruptive FinTech startups, banks in India are feeling the heat from the tech giant’s new initiative. Global consumer companies like Google, Amazon, Facebook, and Apple are quickly building a reputation for their know-how on the evolving behavior of the consumers, and they have been rewarded with heightened penetration, reach, and popularity in comparison to banks.

The one competitive edge that banks could always boast was their exhaustive customer database. But now, with the implementation of PSD2 in Europe, banks’ monopoly on their customer’s account information will likely disappear. This worrying development is coming at a time when the banks’ monopoly over their customers’ relationships is already left in a state of vulnerability with the entry of ne ...

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