“Most people think that the banks can be disrupted very easily. Beware of that thought.”
Fintech is changing the financial services in a fundamental way. Startups are encroaching on a space that was once thought to be the sole domain of industry incumbents.
According to a PwC fintech report released this year, 88% of the financial services sector believe that parts of their business will be lost to standalone fintech companies in the next five years.
How does the former CEO of one of Australia’s Big Four banks think the industry should react?
At a Fintech Victoria and Next Money meetup hosted at PwC’s Melbourne office, Mike Smith – now the chairman of startup coworking space York Butter Factory in Melbourne – discusses how fintech is disrupting the traditionally conservative financial services sector.
In this interview, Smith highlights the untapped opportunities presented to banks by their unrivalled access to data. He also talks about what he sees as the challenges facing Australia in the innovation space, the potential rise of digital currencies, the future arc of blockchain and distributed ledger technology, and why we should beware the assumption that banks can be easily disrupted.
Introduction by Kate Eriksson, Head of Innovation at PwC Australia.