Banking Sector Down in Valley of Disruption
Times of India reports that in his annual letter to shareholders in April, JP Morgan Chase CEO Jamie Dimon warned of a wave of disruption in the traditional banking sector originating from startup hubs such as Silicon Valley. "Silicon Valley is coming," he warned. Thinking alike, SBI made a trip to Bengaluru and sat in the front rows of a startup session listening to how disruptive technologies and fledgling ventures are making their presence felt in the financial services industry.
"We were surprised to see how these people are developing/working on technologies to solve some of the problems we didn't even know existed," SBI CIO Mrutyunjay Mahapatra told ET. Traditional, stodgy lenders for long have dominated the financial services space and controlled most aspects of lending, payments and investments. With the emergence of new-age fintech startups and the advent of mobile and Internet banking, tech-savvy consumers have been presented with alternatives for financial solutions that have the potential to significantly disrupt traditional banking. Which is why they are actively engaging with startups to avoid disruption from payment banks, mobile wallets, new-age financial technology startups and crypto-currencies such as Bitcoin.