DELAYED DEFENSE

High-Tech Attack on Banks

Postbank Geldautomat - gesehen in Hannover am 25.12.2013
The biggest challenge facing traditional banks is digital.
  • Why it matters

    Why it matters

    In addition to low interest rates and new regulations, the financial industry today faces a digital revolution, driven by fast-changing technology and customer demands.

  • Facts

    Facts

    • Banks first became serious this year about the challenge from so-called fintechs — startups that use software to offer a variety of financial services.
    • Apple currently has a stock market value of $600 billion. Germany’s biggest bank, Deutsche Bank, just barely manages €30 billion, or about $33 billion.
    • Financial Innovation Now is a new kind of financial lobby in Washington, with members including rivals Apple, Google, Amazon, PayPal and Intuit.
  • Audio

    Audio

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The news didn’t make big headlines in Washington: Another financial lobby is forming to convince U.S. politicians of the blessings of the modern monetary economy.

What’s striking, however, is the list of members. The lobby for Financial Innovation Now does not include the usual suspects from Wall Street, but rather five top dogs from Silicon Valley: Apple, Google, Amazon, PayPal and Intuit.

No wonder the seemingly minor news item rang alarm bells at big and small banks around the world. The fact that archrivals such as Google, Amazon and Apple are suddenly pulling together is a clear warning that tech-giants also want to stir up the financial scene.

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