Chris Skinner's blog

Shaping the future of finance

Banks and disintermediation, Part Two

Chris Skinner Author Avatar
by
Facebook ecosystem

Building on yesterday’s theme, I struggle when people (including myself, I must admit) shout out that banks are going to be disintermediated, I struggle when someone starts shouting out that Google, Facebook or Amazon will replace banks. 

I struggle even more when rebels state that bitcoin is the future and down with the capitalists.

Maybe I’m too old or too jaded or just too darned cynical, as I’ve heard it all before.

Twenty years ago, everyone shouted that banks would be disintermediated.  Everyone said that Microsoft, Virgin and Wal*Mart would take over.  Everyone pointed at Beenz and Flooz as the new forms of money.

None of it happened.

Maybe it never will.

It is why I now talk about component-based banking, because I do believe the banking business model will change.  But will banks disappear?  No.  They will adapt.

Banks will evolve to become integrators of the best bits of software out there.

They will find the APIs, apps and cloud-based data needed to integrate services into the best-of-breed components that suit the customer best.

This will be in partnerships that create a complex ecosystem similar to the complex ecosystems we see out there for social media …

Facebook ecosystem

… and digital value exchange …

Bitcoin ecosystem

 In other words, the business model is far more complex than it has ever been before, and will continue to gain complexity, but it is the financial firms that find simplicity in complexity that will prosper.

Meanwhile, as I struggle to accept that new players will disintermediate banks, I do believe that they will augment banking.

This is the point I was making yesterday when talking about Google. 

Google, Facebook, Amazon and Bitcoin will end up as part of the new complex business model of component-based banking.

Banks will evolve to work out how they can find relevance to their end target audience though these intermediaries.

In other words, rather than being disintermediated, banks will identify new models for re-intermediation in a much more complex value chain.

This will be interesting to watch.

 

UncategorizedCategories
Chris Skinner Author Avatar

Chris M Skinner

Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...

Intelligent Money: Our Future Is Where We Do Not Think About Money, As Our Money Thinks For Us

What is the future?

Learn more

Learn more about Chris

About Chris Skinner

The Past, Present And Future Of Banking, Finance And Technology

Fintech expert Chris Skinner: countries need digital transformation to remain competitive

Join me on Linkedin

Follow Me on X!

Hire Chris Skinner for dinners, workshops and more

Learn directly from from one of the most influential people in technology, gain insights from the world's most innovative companies, and build a global network.

Chris’s latest book

Order now

Chris Skinner’s ‘Intelligent Money’ Book Launch Event

Top 50 Global Thought Leaders and Influencers on Finance 2024

Global Awards

Lifetime Achievement Award

Global 100 - 2024 Winner

Chris Skinner - Financial Markets Advisor of the Year - The Finanser - UK 2023

Best Financial Markets Advisor of the Year 2023

30 Best Regtech Blogs and Websites 2023

Kids creating the future bank | TEDxAthens

Captain Cake and the Candy Crew

Captain Cake Winner of a Golden Mom’s Choice Award

TWO-TIME WINNER OF A MOM’S CHOICE GOLD AWARD!

Alex at the Financial Services

Gaping Void's Hugh MacLeod worked with the Finanser