Banks see tech giants as the next big threat
The payments market is the new battleground between banks and non-financial companies
Just under half of global banks (40 per cent) see tech giants as their biggest competitors in the next five years, according to a new report.
While fintechs were once touted to eat incumbent banks’ lunch over time, it is the likes of technology companies such as Google and Microsoft who are the more worrying threat for banks, Temenos’ report found.
While nearly half of all banks are said to be looking to acquire majority stakes in fintech to consolidate, it added, the payments market is seen as one increasingly favourable to big tech.
“The new battleground for banks is being fought over the future of the payments industry. The next generation is demanding a new level of sophistication when it comes to instant payments,” Mick Fennell, Business Line Director at Temenos Payments said.
“Banks that want to thrive over the next decade need to be able to incorporate an offering that is instant, seamless and secure so they continue to operate as everyday payment providers to their customers and keep up to date with the expectations being set by the global technology giants," he added.