Banking and financial services cannot exist without bank deposits. And yet, for a very long time Bank Deposits has been the forgotten child in the Fintech transformation with minimal innovation and leaving banks to operate business as usual with opaque pricing especially as regards depositors.
A number of events have started shining the light on deposits. Amongst these, firstly, covid triggers off a global rate and liquidity fest with Quantitative easing and the inevitable reaction now resulting in baked in high inflation, and then Apple enters the space with their Savings account and with their heft and brand, and more recently, the creme of investors and VC's in the US have now backed Zamp, a long overdue service for businesses looking for higher yields.
Bank savings will no longer be the same. In the words of Bill Gross, it's all about timing.
Deposits are about to change. If Big Tech can enable competitive rates on depositor funds, banks stand the risk of losing or competing for almost 50% of their core deposit base without which they could not operate. The implications are enormous and the scenario planning has begun. What will the next steps be?
Likwidity wants to be a leading player with its Enterprise Deposit Platform that automates multi-bank and multi-currency price discovery. Embedded reporting and governance can dramatically enhance returns on cash funds and deliver improved auditability and compliance.
Likwidity was one of 24 scaleups selected by PWC Australia out 500 to join the PWC Align programme and successfully passed a comprehensive due-diligence process covering people, systems and process. PWC Australia is also a client of Likwidity.
Likwidity is building out the team to establish and footprints across initially Australia and USA, with plans for Singapore and UK later. A confluence of events has presented an opportunity for entry into USA supported by research and on the ground information. Bank deposits will increasingly receive attention and Likwidity already has the people, systems and processes to take the platform global.