Ex-CEO of Major UK Bank Says Banking Is in for a Major Upheaval

The banking world is going through a chain of developments, and from the outside it appears to be like a controlled nuclear fission reaction. New startups are using cloud, mobility, analytics, content, algorithms and machine-learning tools to challenge banks and FinTech. They are leaving no stones unturned.

Evolving trends highlight the increasing number of startups, new innovative solutions, consolidation through acquisitions and changing customer expectations. Internet banking has emerged as the biggest focus area in the digital transformation agenda of banks.

In a speech in London, Antony Jenkins, the former CEO of Barclays, said, "The incumbents risk becoming merely capital-providing utilities that operate in a highly regulated, less-profitable environment – a situation unlikely to be tolerated by shareholders."

Jenkins says a series of Uber-style disruptions in the industry could shrink headcount at traditional big banks by as much as 50% while profitability in some areas could collapse by over 60%; this is really an important prediction by a renowned personality who had already run one of Britain's biggest banks. It can also be taken as a warning for traditional banks.

As we have alread ...

To continue reading, sign up for MEDICI Inner Circle and get free access for 7 days.
100,000+ FinTech professionals trust MEDICI Inner Circle to stay up to date on the latest in financial services.