As a recruiter, I operate across the Banking and Financial Services industries. Over the past year or so I have built a number of strong relationships within key ‘Challenger’ Banks who are looking to offer a unique proposition and high quality service in order to break the mould of those who have traditionally offered such dealings. The idea and appeal of the Challenger Bank is certainly something which has grown out of the financial crisis of 2008 - and the apathy and disillusion from the general public towards the ‘High Street’ Banks which followed this.
Prior to the financial crisis I think it would be fair to see that the 'High Street' Bank was seen as the established service built on years of experience which would make for a safer option with regards to your personal savings or your businesses dependencies. This was opposed to the Challenger Bank who were new to the game and had not ‘cut their teeth’ or proven themselves over a long period of time. However, in the wake of 2008 and the events and recent scandals such as PPI which has developed, there is certainly a more credible public view of the Challenger Bank as something which has been born with the right ‘values’ out the ashes of the old banking systems in place during, and leading up to the financial crisis. In essence, a positive and much needed shake up to the old-style banking world. Be this as it may however, the High Street Banks still dominate the market place.
With the High Street Banks possessing bigger brands, more feet on the ground and cheaper cost of funds, it seems an uphill struggle at best for a Challenger Bank to get anywhere near living up to their given title. The question becomes, ‘how can the Challenger Banks become more effective within a given market?’