U.S. banks are trying to take a chunk out of Venmo's business. The money-transfer app has gained a lot of popularity in recent years. And banks are worried that it could cut into their business.
So big names like JPMorgan Chase & Co., S.S. Bancorp and Citibank have teamed up to create an app called Zelle. The app will have similar functionality but could stand apart because of its support from major financial institutions. Users will also get immediate access to funds for free on Zelle, which is something you don't get with other transfer apps.
However, it's still going to be a difficult road for the new app. Venmo, Square Cash and others have already made names for themselves in the space. And customers who are satisfied with those apps will need a significant reason to make the switch.
If those banks had thought ahead and considered different ways to make banking easier for mobile consumers before Venmo and others had gained popularity, they likely wouldn't have this issue.
Late Mover Disadvantage
And that goes for businesses of all sizes. There are always ways you can improve the experience for your customers. And if you don't jump on those opportunities, someone else will. Then you could be fighting to keep up.
Image: Venmo
This article, "Big Banks Fall Behind, Try to Compete With Venmo (Watch)" was first published on Small Business Trends
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