Business Insider's Oscar Williams-Grut reports that Anthony Jenkins, the former CEO of Barclays, is bullish on fintech companies so much that he thinks they'll do major damage to banking incumbents. Jenkins is quoted as saying, "Ultimately, [fintech companies] will compel large banks to significantly automate their business. I predict that the number of branches and people employed in the financial services sector may decline by as much as 50% over the next 10 years, and even in a less harsh scenario I expect a decline of at least 20%." A 50% reduction in the number of financial services employees! That would be a tremendous change across the industry.
The Telegraph's Tim Wallace tells of the latest strategy from banks to get ahead of competition from Google and Apple, who both made major inroads in 2015 when it comes to payments. That is, banks plan to sharply increase IT spending. In fact, a survey from Tenemos found that a full 58 percent of bank executives plan to up spending this year — the highest percentage since the survey started in 2008.
American Banker's Mary Wisniewski employs a stellar headline to capture the excitement associated with the trend in the U.K. toward open bank APIs. The move is controversial for a number of reasons, including that it will make account switching easier (which may cause outmoded institutions to bleed account holders), but overall it should be an excellent change for end users because it means that financial technology will get a much needed uplift.