Ricky Knox

Ricky Knox provides a rundown of the different approaches banks take towards making money, whilst still being a "good bank".

• Right now, most banks make their money through making loans, whether that's via credit cards, mortgages or business loans. However, Knox says it's worth noting that the next generation banks have instead chosen to centre themselves around offering a marketplace. This is both to make money off selling products via commission, and to serve its users by giving them the products and services they want with little to no up-front costs. Tandem chooses to offer its own product and those provided by third-parties, to give their users the best choice possible.
• Knox says that for Tandem, the marketplace model is primarily about "generating customer lifetime value", over monetisation. Where its digital banking competitors have signed up multiple partners and integrations to build up their marketplace offerings, Tandem hopes to provide its users with a lifetime benefit through developing the right relationships and creating the right product view.
• He predicts that digital banks are going to present a "real and credible challenge" to incumbent banks once they reach profitability, which in his mind is also a certain outcome. Knox stated that although Tandem hasn't become profitable yet, "we're not that far off either".

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