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Well, if you want to open a bank (assuming you have the capital), in most countries you will not be allowed to run said bank unless you have sufficient experie

Well, if you want to open a bank (assuming you have the capital), in most countries you will not be allowed to run said bank unless you have sufficient experience. IT wasn't (and isn't) always something that sits on a basement, maybe for all the also-run banks. Global Markets has been and is full technology, for example (in banks and non-banks). And there has been a huge amount of disruption in financial services, it is just a lot more self-disruptive than perhaps other sectors (and the US has a particular poor retail banking/payments system but don't assume that that is globally an issue).

nologic01 3y ago
There are definitely various exceptions. E.g., high frequency trading was the result of a technology arms race that was quite ahead of its time. (Maybe one day adtech will be also limited by the speed of light [1] :-) Also proprietary trading was quick to link to social media and mine "sentiment". But in core financial services (payments, savings and loans), covered by buzzwords like "fintech" or neobanks there has not been much qualitative change. See also the failure of much hyped "innovation" in the form of the various blockchain projects (which pressumably will now be followed by various "AI" projects). Trying to belatedly join the latest hype instigated by others is precisely the behavior of a sector that does not understand and own its information technology. [1] https://www.nature.com/articles/518161a https://www.nature.com/articles/518161a
- RandomLensman 3y ago
  I'd agree but it is also not clear what actual "innovation" customers might want. Depending on where you are, you already have instant transfers, dematerialized credit cards, some real-time credit approval, etc. You also need to see the nods to hypes at least partially as signalling not as necessary acknowledging a lot of value there.

nologic01 3y ago

There are definitely various exceptions. E.g., high frequency trading was the result of a technology arms race that was quite ahead of its time. (Maybe one day adtech will be also limited by the speed of light [1] :-) Also proprietary trading was quick to link to social media and mine "sentiment". But in core financial services (payments, savings and loans), covered by buzzwords like "fintech" or neobanks there has not been much qualitative change. See also the failure of much hyped "innovation" in the form of the various blockchain projects (which pressumably will now be followed by various "AI" projects). Trying to belatedly join the latest hype instigated by others is precisely the behavior of a sector that does not understand and own its information technology. [1] https://www.nature.com/articles/518161a https://www.nature.com/articles/518161a

RandomLensman 3y ago
I'd agree but it is also not clear what actual "innovation" customers might want. Depending on where you are, you already have instant transfers, dematerialized credit cards, some real-time credit approval, etc. You also need to see the nods to hypes at least partially as signalling not as necessary acknowledging a lot of value there.