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
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)
Subscribe for full text news in your inbox