The future for banks and fintech
The Centre for Post-crisis Finance at Loughborough University has been talking to the Behavioural Economics Forum about the ways that future technology will change the banking and finance landscape.
'We won't recognise banks in twenty years time' said Professor Alistair Milne, Director of the Centre. 'They are likely to become much more akin to technology platforms for peer-to-peer lending.'
He went further to state that fintech has already been having an effect on the behaviour of banks, but that it has been in foreign exchange where impact has been clearest with firms like Shoreditch-based Transferwise and Currencycloud creating change.
This view is reflected in remarks made by Lawrence Summers in the Financial Times on 2nd May 2017, where he is quoted saying that fintech companies are 'likely to have the same sort of effect Skype has had on the telephone companies - forcing drastic reductions and profit margins on some key products.'
Alistair joined us to debate the role of the Chief Risk Officer in bank stress testing, with the Nationwide's Michele Faull (now CFO at Coventry Building Society) and Patricia Jackson, Adviser on Risk Governance at EY and Non-Executive Director at Atom Bank.
You can view Alistair talking about the future for banks and fintech and the work of the Centre in the video.