Financial Services Under Pressure – JP Morgan CEO Calls it!

JP Morgan’s CEO Jamie Dimon’s Letter to shareholders is an excellent must-read. Key points:

· Banks facing fierce competition from multiple vectors

· Banks playing an increasingly smaller role in the financial system

· Tech companies (Amazon, Apple, Facebook, Google) and Walmart are here to stay

· New competitors successfully easing customers’ pain points - making digital platforms extremely easy-to-use, intuitive, with fast & smart products - from loans to payment systems to investing

· Fintech companies around the world are advancing both digital & physical banking products and services - utilising social media, using data smartly & integrating with other platforms rapidly to win significant market share

· Big Tech (Amazon, Apple, Facebook, Google) will all embed payment systems within their eco-systems and create a marketplace of bank products and services

· Growth in shadow & fintech banking calls for level playing field regulation

· AI, the cloud and digital are transforming how we do business

Similar observations apply to insurance. Source: JP Morgan