Bank Director Magazine Conference: Fintech, Cybersecurity and Other Worries for 2020
Tim Melvin is reporting from Bank Director Magazine Acquire or Be Acquired Conference
At the Bank Director Magazine Conference in Phoenix, the general mood is upbeat. However, bankers have some concerns about the industry in 2020.
Threats for the Road Ahead
At the top of the list is competition form fintech firms and big tech companies. Millennials are more focused on technology than one-on-one discussions in a branch. They have emerged as the target market for fintech companies and big tech companies like Amazon (AMZN) and Apple (AAPL). It is a top concern that fintech will disrupt commercial banking in the same way it did to consumer banking in recent years.
The prospect of a slow economy and low net interest margins have rattled banker sentiment. Nothing has emerged in the Fed’s data that indicates GDP growth above 2% this year. I have had many discussions with attendees. Few bankers expect the Fed to hike interest rates this year. Lower rates could hinder growth for many smaller banks in 2020.
Cybersecurity is also a top concern. The more mobile and digital banks become, the more exposed they will be to cyber-attacks. Current estimates state that more than 700,000 attacks hit a bank’s IT system each and every hour of the day, seven days a week.
Finally, one investment banker people won’t talk about the most significant risk because it is politically incorrect. He noted that a change in control of the White House or Senate could completely change the banking environment. Bernie Sanders and Elizabeth Warren are viewed as the biggest threat to banks, in his mind.
Right now, the heads of agencies that oversee the banking industry are bank-friendly. That factor would change quickly in 2021 political control flips in November.
Latest Alternative Investment News
AeroPay and Jane Technologies announced Thursday a partnership to enable online payments via AeroPay across 36 U.S. state markets where cannabis is legal. More than 2,100 dispensaries and 300 companies…
In a speech on Wednesday, Jon Cunliffe of the Bank of England called for tough regulations on cryptocurrencies, drawing a parallel between the $1.2 trillion subprime mortgage market in 2008…
Tata Motors (NSE: TATAMOTORS), the automobile company of the Tatas, the Indian salt-to-airlines business conglomerate, will receive an investment of approximately $1 billion from TPG’s Rise Climate Fund and Abu…
Bitcoin, the leading cryptocurrency, is within handshaking distance of its April all-time high of $64,895 after spiking over the last 24 hours on rising market expectations of an imminent SEC…