Could one unexpected outcome of the recent set of U.S. bank runs be that it may help the banking industry in its fierce battle with upstart fintech competitors? Our Chief Product Officer Jon Stephens shares his thoughts via RealClearMarkets.
– Jon Stephens, Chief Product Officer
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
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.
Read more via RealClearMarkets.
