Banks need to "disrupt themselves" before someone else does: Morgan Stanley

|By:, SA News Editor

Pressure is increasing for banks to innovate and "disrupt themselves fast before someone else `eats their lunch,'" according to a Morgan Stanley report by contributors Giulia Aurora Miotto and 
Betsy Graseck.

With $58B in total fintech-related financings in H1 (including venture capital, private equity, IPOs, and M&A), IT spending will be even more crucial for banks as fintechs, which don't have to deal with legacy IT costs, can offer financial services a lot cheaper.

Banks with "best-in-class" technology may improve their ability to defend and/or boost market share. Among banks in his position are: JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC), BBVA (NYSE:BBVA), DBS Group (OTCPK:DBSDF), and Dun & Bradstreet (NYSE:DNB), according to the report.

Source: Bloomberg First Word.

Previously: New York sues to halt fintech bank charters (Sept. 14)

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