If you’ve been following the financial industry, you know that big banks are slowly losing customers to agile fintech startups. And it’s not just the young people who are flocking to these new digital-only companies — even older, more established customers are making the switch.

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So why are they leaving?

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1. Big banks are slow to adapt to change. They’re still using legacy systems and processes that make innovation in new services very difficult.
2. Big banks less customer-centric. Startups are all about providing a great customer experience, and that’s something that big banks aren’t set up for.
3. Startups are constantly coming up with new, innovative products and services, while big banks have no way of catching up.
4. Big banks charge high fees for everything from account maintenance to international transactions.
5. One of the most important reasons, is lack of transparency. Have you ever tried to understand the fine print on your bank statements? Startups tend to be much more transparent when it comes to fees.

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We do believe that bigger institutions can compete with younger and smaller digital-only banks, but they must do it through true product innovation. They need real ideas. A glossy, smart-ass campaign won’t do it to overcome the inherent distrust bigger banks suffer from. Big banks need to innovate again and go after a younger audience by introducing meaningful products that make a difference in the lives of these new generations.