MIT Fintech Report Suggests the End of Banking Is Near
A new report, issued by the Massachusetts Institute of Technology (MIT), explores the potential of digital banking, including the possibility of a world without banks. MIT Report: Legacy Banks Stuck in a Malaise. The report, contentiously titled “Digital Banking Manifesto: The End of Banks?” was published in August and authored by Alex Lipton, David Shrier and Alex Pentland of MIT’s Connection Science Department. In it, the researchers look over the lack of innovation in the banking sector and how it compares to other industries, including retail, travel, communications, and mass media.....
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A new report from PwC claims that 83 percent of financial services companies believe specific aspects of their businesses are at risk to various fintech startups, with the number of worried management-level professionals reaching 95 percent in the banking sector. The PwC report is based on a survey of 544 CEOs, heads of innovation, chief information officers, and top management personnel in financial services companies from 46 countries around the world. While traditional financial services companies believe fintech startups could take hold of 23 percent of their business, the fintech....
As per a report "Innovation in Payments: The Future is Fintech" by BNY Mellon venture capital investment, accelerator programs and an active focus on the usage of new technologies via allegiances with fintech companies should become the top priorities for banks. This, the report, says is extremely important as the multiplicity of new payment capabilities come to the fore. The report follows on from "Global Payments 2020: Transformation and Convergence" and digs deeper into the growing influence of fintech in transaction banking. Moving further the report also tries to dissect the direct....
Deutsche Bundesbank President Jens Weidmann recently said that FinTech requires more regulatory oversight because of its potential to threaten financial stability and the banking sector, but some believe this isn’t the case. In a report from PYMNTS, FI.SPAN’s founder and CEO, Lisa Shields, is reported as saying that the FinTech sector can help banks out and boost their commercial B2B business. According to the report, the business commercial banking segment is worth $1.85 trillion worldwide. However, banks are reported to have estimated that around $500 billion of that sum is expected to....
A new fintech report by the Massachusetts Institute of Technology (MIT) has legacy banking will “undoubtedly disappear” and that future banking will need to handle both private and state-issued virtual currencies. MIT: Legacy Culture ‘Inhibits Innovation’. The report, dubbed “DIGITAL BANKING MANIFESTO: THE END OF BANKS?” was released this month by Alex....
In the next 10 years, 30 percent of banking jobs could be obsolete, according to a recent Citi GPS report. This statistic from Citigroup’s report makes an assessment of the potential impact of fintech on the global banking industry. It echoes the concerns of former Barclays PLC Chief Executive, Antony Jenkins, who referred to the position of consumer banking as being “in an Uber moment” that would lead to rapidly accelerating job losses. “I predict that the number of branches and people employed in the financial services sector may decline by as much as 50 percent over the next 10 years,....