With the number of reports suggesting that fintechs are bad news for banks, it may come as a surprise, that the opposite is in fact true. Fintechs may actually be the best thing to happen to traditional banks and the banking sector for a long time. No, really.
News that Apple is upping its game in mobile payments serves as another reminder that traditional banks are increasingly under siege. Aside from managing a growing mountain of regulatory requirements and escalating margin pressures, financial institutions face the emergence of formidable competitors, often from companies in the retail and communications sectors that haven’t traditionally operated in this space.