Banks have come under extreme scrutiny and pressure in recent years, due to regulations like GDPR, PSD2, and MIFID2. These have hit the banking sector hard. There has also been a long period of negative interest rates (with no sign that this will change); a general negative attitude towards traditional banks dating back to the financial crisis; and major digital transformations have occurred in the sector, led by fintech startups without any legacy to stop them — all this has created a volatile cocktail that could put an end to banks as we know them.

Neobanks like N26, Revolut, Monzo and Starling Bank propose a new banking future, and it seems to work. N26 and Monzo both have more than three million customers, and Starling Bank, launched in 2017, has more than one million accounts and £1 Billion in customer assets.

Here in Denmark, we have Lunar. A 24/7 mobile-first, customer-centric, user-friendly solution. Lunar has all the digital tools we love like peer-to-peer payment, easy and low-cost international money transfers and a great spending overview without fees etc.

Our everyday payments are also being handled by a new set of companies, such as Mobilepay. (despite their fantastic start in Denmark, they are now losing out to Apple Pay with in-store payments).

And, you can add the Open Banking revolution to the mix, nourished by PSD2. We have only seen the beginning of this movement with banking-as-a-service companies like Green Dot. They now have five million customers through partnerships with companies like Walmart, Apple and Uber.

Several of these partners are also entering the banking market. Apple with their new credit card and Uber with the launch of Uber Money. And they’re not alone. Facebook (Facebook Pay) and Google (checking accounts through Google Pay) are also launching financial products. These companies are using their established relationships with end consumers – even though some will argue whether you want these companies to handle your money issues as well.

So, my prediction for 2020 is that we will see a change in power and user relations in the banking sector. We will encounter a combination of challenger banks, global non-bank brands, and new fintech start-ups. This decade will be the beginning of the end for traditional banks.