Question

1. Initially, in April 2016, Atom Bank started offering a one-year fixed saver account to
millennials (between 18 and 35 years old). Gradually, the bank extended its product line by
adding a two-year savings account. It offered a one-year fixed savings account interest rate of
2%, approximately 0.4% higher than that of its nearest competitors (Refer to Figure III for fixed
saver accounts of Atom Bank as seen on mobile app). Additionally, in 2018, Atom Bank
launched two fixed saver accounts for three months and six months with interest rates of 1.3%
and 1.8% respectively. It also allowed customers to open an account with £50 initially. By the
end of 2018, Atom Bank had touched £1billion in Fixed Savings accounts. Atom Bank observed
that millennials were anxious around money. The vast majority of millennials who did
monetary transactions mostly through their phone, were worried that their money would not
last until the end of the month. They were terrified about opening bank statements and
checking their balances.
Explain how new age banking services are different from traditional banking services.

Answer 1

Answer:

Sorry this question is very long......