

Retail bank penetration is measured as retail loans % of total loans.

Markets with savvier banks can have incumbent-led change, as in Scandinavia and perhaps neighboring Northern European markets. China in recent years has been a great example of this trend. Where society is changing rapidly, but banks are not, new entrants in finance lead the change. In emerging markets, new entrants have grown rapidly in finance. To quote from the 2015 Gates Annual Letter, innovation will “trickle up” to so-called developed countries from emerging markets that are leap-frogging stages of technological and business model development. And the U.S.-origin BigTech giants could actually become more active in finance in emerging markets such as India (see the entry into payments by WhatsApp or Google) than in the U.S. In fact, BigTech firms are most active in financial services today in China rather than the “West,” when measured by number of financial services clients or breadth of products. The Bank of the Future is being shaped as much by companies headquartered in Shenzhen (Tencent, Ping An) or Hangzhou (Alibaba) as by firms from the U.S.
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is likely to remain an important player in building the future of finance, but as Peter Thiel has now said for several years, Silicon Valley has no monopoly on innovation (Zero to One: Notes on Startups or How to Build the Future, 2014). The geography of innovation is increasingly decentralized. As a result, Antony (Jenkins) started with a blank paper and created a new system from scratch to improve the banking experience, incorporating machine learning, cloud services, encryption at all states etc.” The Voyager Fund led the last funding round by 10X Technologies run by Antony Jenkins.įor a deep dive into core banking IT infrastructure, cloud-based services, competition from challenger banks, and the cost implications of all the above, turn to Chapter C of this report. New Bank IT Investment Priorities, 2014-2016ĬRM Regulatory Service Payments VirtulisationĪs Jonathan Larsen, Chairman/CEO of the Ping An Voyager fund, notes in Chapter C, “Legacy platforms relying on mainframe systems are a big problem holding the banking industry back and making any changes is very complex/cumbersome.


Interview with Citi Ventures: Ramneek Gupta.Banking & Securities Is the Largest Non-Tech Industry for AI.Industrialization of AI – Spending and Investing More.Interview with Exponential View: Azeem Azhar.Re-imaging versus Re-engineering Finance.C Is for Core Banking, Cloud, and Challengers.B Is for BigTech, Especially in Asia and Emerging Markets.A is for Artificial Intelligence and Automation.The ABCs of Digital Disruption in Finance.
