Next banks will come from Silicon Valley...

Banks have to adapt,  says Executive Board Member  Anreas Dombret of German Bundesbank in his 11 March interview with a German Newspaper, Suddeutsche Zeitung. He included low interest rates and digitalization of banks as challenges to European banks.  Digitalization , he opined is inevitable and the need for efficiency is a driver. 

He also cautioned that hackers are getting together to re-organize on the strength of financial and technical resources. 

He suggested that non profitable banks should exit respecting the fair play of market forces. 

Our Comments

The forthcoming great 'fintech' revolution is going to change banking as we know. Tomorrow's competitors for banks are not banks or finance companies but technologically sophisticated companies with massive on time investments in techniques, talent and money. Apple to Microsoft to Samsung to Google may be the fintech players in an era of Internet of Things. Click and Mouse will pave way for renewed vigor in real time settlement , transparency,  and customerization on a  real time basis. The new players will take us away from 'fixing' by majors to a real time banking perfect market (modifying a la foreign exchange market) . 

Those who cannot foresee this great change or do not who have the resources to change will be condemned to the dustbins of banking history. 


Technology has always been a catalyst in banking and finance. It will accelerate transformation in times of the Internet of Things.

Copyright of this article and its contents vests with the author of this blog: Jayaram Nayar. He can be contacted at email: jaynayar@gmail.com