Banks Should Keep Up With FinTech

Banks Should Keep Up With FinTech

Antony Jenkins, the former chief executive officer of Barclays, said that banks should embrace financial technologies. Otherwise, they may fail into i

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Antony Jenkins, the former chief executive officer of Barclays, said that banks should embrace financial technologies. Otherwise, they may fail into irrelevance.

Antony Jenkins was the group CEO of Barclays from 2012 until he was fired in 2015, as CNBC (cnbc.com) reported.

He noted that the opportunities produced by digital ledger technologies such as blockchain can lead to efficiency savings of between $80 billion and $110 billion.

In addition, the ex-chief executive said that banks, which fail to keep up with the pace of financial technology, can face existential crisis.

“We’re really at the end of the beginning of what we see as a revolution driven by technology with financial services and fintech is really a too narrow categorization of what’s going on here,” Jenkins said as quoted by cnbc.com.

“As the technologies develop and season, they’re going to create a totally different way of doing banking and financial services.”, as he added.

In 2015, the official warned that banks were approaching an “Uber moment” due to the emerging financial technologies, as cnbc.com noted. As Jenkins told the online media, financial services would supposedly see a decline in staff and branches “by as much as 50 percent over the next 10 years”.

“Now we will see the possibility – not necessarily the probability – of what we call a ‘Kodak moment’, where increasingly banks become irrelevant to their customers.”, as he commented now. ”

“Banks can avoid that, but they have to act now, and what they really need to do is think about innovation, but also transformation, doing something radically different.”, as Jenkins elaborated.

One possible recommendation is that banks adapt to the new technologies like blockchain technology and artificial intelligence.

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