THE DECOUPLING OF BANKS - HOW NON-BANK ENTITIES WILL DICTATE THE FUTURE OF CONSUMER FINANCIAL SERVICES

As recently as ten years ago, nearly all of a consumer's card and banking relationships, i.e. debit/credit/checking accounts, were established exclusively with traditional retail depositories. Developments in technology and the ability to “rent a BIN” from a licensed bank have led to an influx of third-party entities, including phone companies (ISIS), prepaid card program managers (Green Dot, NetSpend), Software companies (Google Wallet, Square), retailers and decoupled debit providers (NPCA), that are disaggregating the traditional banks and taking ownership of the consumer financial services relationship. The presentation will outline the trends underlying this thesis as well as outline what this means for banks and companies throughout the payments ecosystem.