The biggest threat to banks isn’t fintech or big tech–it’s the government

It wasn’t that long ago that the banking pundits were predicting that fintech startups would put existing banks out of business. The Wall Street Journal headline Biggest Three Banks Gobble Up $2.4 Trillion in New Deposits Since Crisis squashed that delusion.

The zeitgeist changed, and the new mantra among the disruptionistas is “Big Tech is the biggest threat to banks.” Some recent viewpoints:

“In terms of where real challenges are going to come into this market, it will be around the entry of Big Tech firms. Many won’t actually want to become a bank as such, but they may want to offer products that compete directly with banks, like simple lending products.” —Christopher Woolard, Financial Conduct Authority

“Tech companies are disrupting the banking sector at a time when people still find it hard to trust conventional and reputed banks.”–Cloudcherry


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