TRY FOR FREE

How BigTech Challenges Banks

The evolution of bank-FinTech narrative brought us to a logical point, when FinTech is no longer perceived to be a threat to traditional banking, but rather as an instrument in re-establishing their position in the financial services industry. The narrative, however, doesn’t end there. As Citi emphasized in its March 2018 Bank of the Future: The ABCs of Digital Disruption in Finance report, traditional banking is being challenged not by small FinTech startups, but by established tech giants because of:

Large and captive user bases

JPMorgan Chase has 46.7 million digital customers, claiming to be the number one most visited bank website with the most mobile banking customers. Amazon Prime, for comparison, counts 90 million US-based subscribers. At 90 million subscribers each paying $99 per year, the company generates nearly $9 billion in revenue without those customers even buying anything on the platform. As of the fourth quarter of 2017, Facebook had 2.2 billion monthly active users. In December 2017, WhatsApp had more than 1.5 billion monthly active users, ...

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.

RECOMMENDED