And so you're going to have an uphill battle to get the loyalty back
And they're willing to trust these technology firms in ways that
they may not trust banks
Because the past ten years have been a little hard on banker credibility and
trust
And so why is FinTech a threat, because people like tech
Because their hearts are shifted to tech
Because tech has a lot of access to capital
Because these new apps are convenient
Because these new technologies are faster and better
This is a threat like banks have never before faced
in the history of banking and technology
It's not because the tech firms are so good at finance
It's because they're so good at tech and consumers like tech, and
tech is profitable and powerful
That is going to put banks at risk, and with thousands of small companies
you don't need them all to win, you just need a few to win
Now, let me wrap up by saying, is Fintech a threat?
Well, I would draw an analogy to e-commerce, is e-commerce a threat?
Many people looked in the heyday of e-commerce, the dotcom boom and
the following bust
And they were focused maybe in the finance market on valuations and
how crazy valuations seemed at the peak of the boom
Of course, for some of the winners
values are higher now than they were at the peak of the dotcom boom
And so there will be some winners that are big winners, but
there was a lot of junk out there, there was a lot of noise
Same with FinTech, there's a lot of junk and a lot of noise
there's going to be a lot of failures
There are going to be a lot of things on the side of the road that just didn't
pan out
Now that's a little risky if you're an entrepreneur, but that's the nature of
a startup, that's going to be the nature of any new disruptive ideas
I mean
there were hundreds of car companies in the early part of the last century
Three survived to today in the United States, that's not very many
Lots of people said, cars are a big deal, but we've only got a couple survivors
And we're not even sure all three of those are going to survive for the next 20
30 years
But tech matters, and when we think about e-commerce
we're now facing the impending bankruptcy potentially of Sears
and the struggling of in and out of financial difficulty
Toys R Us liquidation, Walmart growth slowing greatly
Amazon capturing more and more market share
There is no question that e-commerce has hit retailing hard
There's no question that technology has hit the pharmaceutical industry hard
Companies that have gotten good at biotechs or
biologics are making much more than companies that are thinking
in a traditional mode about biotech or the low tech of pharmacies
You can't do business the old way
Technology has transformed medicine
has transformed retailing, is transforming the auto industry
And if you're in banking and you think you can avoid that, think again
You're going to adapt or struggle for
survival, and so it matters
That's my pitch to banks, why is FinTech a threat
Couple of reasons, but it is a threat, and
you need to adapt or dissolve, thank you
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