A former employee of JP Morgan Salvador Castro is sure that the banks were defeated by cryptocurrency and FINTECH companies.
This former banker wrote it in his blog on Thursday. He noted that, in fact, banking institutions have two missions: to promote economic activity and to play a role of mediator in the relationship between those who have funds and those who need them.
Castro believes that the development of the FINTECH industry is a wake-up call for the necessity of the usual financial system.
“Banks are faced with fast and flexible companies, optimized from the point of view of flow, resources, business models and adapted to each particular product”
He also pointed out that blockchain and cryptocurrency lead people to financial independence, which will definitely affect conservative banking organizations.
Earlier, one of the creators of the Revolut project, Nikolai Stanovsky, said that the usual financial institutions will not be able to offer the market the advantages of FINTECH companies working with cryptocurrencies.
He believes that because of this, many banks will be forced to leave the market. In about 10-15 years, several major players will remain in the financial market.
On Friday, July, 20 two largest Russian banks - the Bank of Russia, Sberbank and Alfa-Bank - started piloting cryptocurrency portfolios for their private clients, - Kommersant reported.