What the Economist Buttonwood event has to say about the future of banking

future of banking

Last week, finance’s who’s who soiréed at the Economist’s Buttonwood Gathering. The one question that seemed to underly all the discussions and break out sessions:

  • what about banks? 
  • What’s the banking sector’s role going forward when fintech is disrupting from above, below, and laterally?

Here’s Tradestreaming’s own “gathering” of articles written this week with a variety of different viewpoints on the matter. The one thing all these viewpoints have in common is that tomorrow’s banks will look nothing like today’s. Subscribe to Tradestreaming’s weekly email to stay on top of all these trends in finance.

Economist’s Buttonwood: Banks of the future?

Build, Buy, Partner, or Ignore: Banking’s response to online lending (Tradestreaming)
Tradestreaming Tearsheet: Banks are being assailed from all sides (above, below, and laterally). Regulation doesn’t allow the sector to be too creative, creating a competitive situation for the incumbents right now. Here are 4 things they can do moving forward.

Will Fintech Upstarts Do To Banks What Uber Has Done To Taxis? (Forbes)
At The Economist’s Buttonwood conference Tuesday, Wall Street and Silicon Valley debated who will ultimately change the face of financial services in the U.S. Will the startups win, will the old guard maintain their stronghold on the industry – or will the two entities find a way to work together?

Should banks fear fintech? (BANKNXT)
José Antonio Gallego classifies disruptive companies in a novel way, highlighting those fintech startups succeeding in a changing financial world. “With this non-exhaustive overview, we have divided these [banking] companies into five different types: Sioux, Guerrilla, Samurai, Double Agents, and Invaders from Outer Space.”

Suddenly Cash is Anathema For Banks (Pymnts.com)
Tradestreaming Tearsheet: As investment managers are stockpiling cash in front of an uncertain economic future, banks are taking measures to dissuade large investors from keeping too much cash as deposits. If banks aren’t taking deposits, what are they doing? What’s an asset-light bank?

Key trends in retail banking in 2016 (BANKNXT)
Verdict Financial senior analyst Daoud Fakhri answers questions about trends in retail banking, and how the landscape will change in 2016.

Building the Framework for the Future of Banking (bank innovation)
“A new approach to banking technology uses an enterprise services framework to overhaul the way individual solutions are connected, supporting comprehensive, real-time information sharing. This advanced integration environment brings together cloud, mobile, social and fast data to create a digital enterprise. And it signals a major transformation.”

Fintech is creating creative pressure on the incumbent banking infrastructure, stealing bread-and-butter business from the banks. Regulation makes it hard for banks to compete while many fintech firms can continue to fly under the regulatory radar. All signs point to the fact that future banking will look very different than it does now.

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