Virgin Money has already made a hefty amount of investment (around 38.3 million) in last year with a mission to launch its new digital challenger bank.
Virgin Money has already made a hefty amount of investment (around 38.3 million) in last year with a mission to launch its new digital challenger bank. Needless to mention, Virgin Money wants to create a robust, customer-centric, and data-driven digital bank so that it can broaden its appeal and existence in the SME market and provide better offerings to both current and savings accounts.
According to the company, it’s focused on implementing a strong technology backbone, while incorporating the advantages of the regulatory and technological changes of the UK retail banking. For instance, with the introduction of Revised Payment Service Directive or PSD2, banks’ monopoly on the customer’s account information & payment services is expected to disappear.
Virgin Money has made a partnership with a fintech startup, 10x Future Technologies (founded by Antony Jenkins, the former Barclays chief) in 2016 in order to develop its new digital challenger bank.
10x Future Technologies uses an API that brings all legacy systems together in a secure network. Using this API, Virgin Money will be able to pull together the required data about their customers, for example, lifestyle preferences, risk tolerance, and existing finances. By accumulating this data, the company will help their customers to find the best product within the shortest time span.
The digital bank division of Virgin Money is deemed to be available by mid-2018. Virgin Money chief, Jayne-Anne Gadhia has recently mentioned that their digital challenger bank will broaden up customer appeal, diversify their funding base, and generate more UK retail banking revenues.