Monday, June 19, 2017

Change App: What really has changed?


On my newsfeed, this article from the Change blog was shared and that led me to visit the Change site.

While I initially thought to myself, "Ooo, what's this cool idea?", I realized that I had actually stumbled upon this before, and I thought it was rubbish.

I only realized it again after I visited the webpage and thought to myself again that it was rubbish.

So what is this.. "challenger bank" thingy? You know me, I love market disrupters like Uber and Grab. Let's see what this thing can disrupt...

Open an account in 5 minutes, okay that's not bad. I already have banking relationships with 5 banks thought. I don't know a single person who doesn't have a bank. Maybe if I read on I will figure out why we need them to be our bank?

Top security. I don't really feel like any of my banks are lacking security, but top security is a good thing, just not anything special that I don't already have.

Convenience. Expense tracking and recommendations? This is a bit of a useless overlap?

Mobile wallet. With all the different -Pay apps (Apple, Samsung, Google), why do we need another one? At least with those cards, the value proposition is that you can still get benefits from using those cards.

"A Door to Investment Opportunities". This seems like the only thing that they have. However, if you look closely at their screengrabs, they just seem like a broker or feeder service into other actual investment services, such as Smartly. Why would I need someone else to invest into Smartly for me, when I can just do it directly myself?

Cryptocurrencies?! Okay, this one caught my attention. If they do allow cryptos, that would probably be their only edge. But, FYI, the spreads between the SGD buying price of cryptos compared to the actual market prices in USD, even after taking into account exchange rates, it is still a freaking big gap. I highly doubt it would be practical to purchase cryptos after taking into account the huge price gap.

Hey wait a minute. That's it? Where is the hassle-free banking experience, better returns and lower fees that was in the marketing spiel from the blog post? Non-existent, I suppose...

Conclusion: This app is nothing more than a prepaid mobile wallet, with options to "invest" with your funds within the app. Calling

This is fintech in Singapore?! This is nothing.

If you want to see a real fintech company in Singapore that is going to make changes, keep an ear out for TenX. If they can deliver on their product, paying in FCY will cost less than 1%, compared to what we have today which charges between 1.8% - 3.5% fees (Source 1, Source 2).

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