One of the mina points brought to us by Chris Skinner is his opinion that traditional banks are unable to compete with many of the specialists that technology has helped create. Banks are truly unfit to compete with many specialist firms in the sense that specialists have implemented systems have created far simpler financial activities. Today, larger banks have structures that are largely inflexible and can limit their ability to account for new trends and customer preferences. While banks continue to have a place in our financial world, Skinner wonders if banks will be relegated to “low-margin utilities” while smaller fintech firms deal with the customer relationship side of business.
One interesting point that Skinner brings up is the possible use of data by banks that right now not being used. It is still unsure how effective this data could be and whether it is even worth taking the time to analyze this data. In contrary to this article, I think banks should capitalize on the massive amounts of data they have. Banks should be making efforts to capture, understand, and act on the data left by their customer base. Ultimately, I think this could leave banks with better customer relationships and perhaps more business.
https://www.forbes.com/sites/tomgroenfeldt/2017/03/06/mobiles-blockchain-and-cryptocurrencies-can-expand-or-threaten-banking/#3955520e5789