Has the Banking Crisis Helped Banks In Their Battle With Fintech?

He argues in the piece that on the surface, the brick-and-mortar banking business has seldom looked more vulnerable to disruption. However, while the competitive threat from “neobanks” and other financial technology companies is real, traditional banks, especially the larger variety, still retain significant characteristics that offer value to both commercial and retail customers.

Top among these, according to Stephens, and perhaps ironically, is a sense of safety. He argues that despite the recent shutdowns/forced sales of Silicon Valley and First Republic Banks, the very fact that banks are perceived as slow and stodgy are attributes that tend to ease customers’ minds during a time of heightened risk.

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