Fintech specialists say ‘NextGen banking’ may replace Big Four
Banks of the future will be technology companies with a banking licence, and traditional finance options may give way to more digitally advanced methods and platforms, say fintech specialists.
According to panellists speaking at the Fintech CEOs on the Future of Finance seminar in Sydney on Wednesday night, financial technology firms will soon attract market share and talent away from current banking incumbents, while new digital roles set to replace traditional finance jobs.
Speaking at the event Jost Stollmann, CEO of Tyro Payments, predicted that ‘next generation banking’ would eventually take over, with at least one of the big four banks to disappear completely in the next few decades.
“Can an old-style bank respond and stay competitive? Maybe. Can all of them? Probably not. Just think: one of the big four banks could disappear in the next 20 years. The only question is, which one will it be?” he said.“Unless the banks can unbundle their products, overcome their legacy infrastructure and compete with low-cost ‘provider agnostic’ digital platforms, they might well cease to exist.”
The seminar, hosted by OnMarket, took place at the University of New South Wales’ University Network for Investing and Trading (UNIT).
The Australian fintech sector is forecast to take $10 billion in aggregated revenues away from the big Australian banks and contribute $3 billion of new revenue to the Australian financial services sector from 2015 to 2020, according to recent Frost & Sullivan study, Fintech in Australia – Trends, Forecasts and Analysis 2015 – 2020.
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