WHAT WILL LOOK LIKE BANK INDUSTRY IN THE FUTURE?

Few days ago the former CEO of Barclay's, one of the largest bank in the UK, said that the fate of today bank industry is already written. The technology will very likely disrupt the way banks make profits (lending, wealth management, payments) as more and more financial technology startups will arise.





One main reason of the proliferation on fin.tech is the relative low cost to set up a software startup. A report by CB Insight estimates it can be as low as $ 5,000.
Customers want to spend less for services they see mundane and with little cost, like payments. On the other hand they want highly sophisticated financial advises, but they are better informed about the choices on the market.

Today traditional banks, either national or global ones, offer a vast array of financial services, from mortgage to personal insurance and credit default swaps. Startups are trying to offer the same services for less than a bank can do.

The real difference right now lies in the reputation and customer base big banks and fintech have. Once customers will learn about cheaper and easier bank operators, a Uber-style revolution will unfold.