Wall Street isn’t worried about getting disrupted.
The former Barclays CEO Antony Jenkins last year predicted that banks would soon have an “Uber moment” — meaning they’d face pressure from financial technology, or fintech, competitors and see their industry upended.
Last week, Citi GPS reiterated that sentiment, predicting that the “automation tipping point” for banks was fast approaching, and some 1.8 million people could lose their jobs.
But according to a new report from Autonomous Research, those fears have actually subsided on Wall Street.
Why? Essentially because big banks can simply buy fintech disrupters.
Here’s a snapshot of the sentiment among 120 finance industry professionals polled:
Only 9% of respondents see fintech as a destructive “Uber moment” for banks, down from 14% in December.
That’s because the banks already own the customer relationships, and startups are realising that’s tough to disrupt. As a result, Wall Street is starting to view the startups more as partners.
We’re already seeing that trend start to take hold. In December, JPMorgan partnered with online lender On Deck Capital.
And this year, JPMorgan launched a trial project with Blythe Masters’ blockchain upstart, Digital Asset Holdings. That startup has secured funding from Goldman Sachs, Citigroup, and a plethora of other financial institutions.