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Essential Fintech Reading: Nov 20 - 27

Nov 27, 2015 4:39:00 PM

Ex-Barclays CEO: Banks are about to have an 'Uber moment' — and it's going to be painful

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.

Banks splurge on IT to fight threat from Google and Apple

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.

U.K. Push for Open Bank APIs Makes U.S. Look So Last Century

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.

 

Source: http://bit.ly/1Nd1Pim 

Jon Ogden

Written by Jon Ogden

Jon Ogden is the Director of Content Marketing at MX.

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