Reports of our death are an exaggeration: Difference between revisions

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 ===Perez’ Folly===
-Not long before departing the ship erstwhile head of UBS Evidence Labs Juan Luis Perez — not himself by background a Banker — was heard to remark that UBS competition was not from start-up challenger banks, but from Apple, Amazon, or Google.
+Not long before departing the ship erstwhile head of UBS Evidence Labs Juan Luis Perez — not by background a banker — remarked that the incipient competition for banks was not “challenger” banks, but Apple, Amazon, or Google.
-His argument was this: a bank’s business success is mostly down to three components: its technology stack, its reputation and goodwill, and its regulatory status. Two of these — tech and reputation — are hard, substantial problems, he proposed, while the other — capital and regulatory compliance — is comparatively formalistic, especially if you have a decent technology stack.
+His argument was this: banking comes mostly down to three components: technology, reputation, and regulation.
-Apple, Amazon, and Google ''wipe the floor with any bank on technology'' — I can go with that — and materially better standing with the public. Who doesn't love Amazon? Who ''does'' love the Chase Manhattan bank?
+Two of these — technology and reputation — are hard, substantial problems, while the other — regulation — is comparatively formalistic, especially if you have a decent technology stack. How do the banks stack up against the FANGS?
+{| class="wikitable"
+|+Banks v FAANGs: showdown.
+!
+!Technology
+!Reputation
+!Regulation
+|-
+|'''Banks'''
+|Generally legacy, dated, patched together, under-powered, under-funded, conflicting, liable to fall over, susceptible to hacking.
+|Everyone hates the Financial Services industry.
+|All over it. Capitalised, have access to reserve banks, connected, exchange memberships, etc.
+|-
+|'''FAANGS'''
+|Awesome: state of the art, natively functional, at cutting edge, well-funded, well-understood, robust, resilient. Ok could be hacked
+|Who doesn’t love Amazon? Who wouldn’t love to have an account at the iBank? Imagine if banking worked like Google Maps!
+|OK there
+|-
+|'''Winner'''
+|Cmon: are you kidding me? '''FAANGS''' all the way!
+|'''FAANGS'''. Are banks even on the paddock?
+|'''Banks''' have the edge right now. But look out white-shoe types: The techbros are coming for you.
+|}
+Apple, Amazon, and Google ''wipe the floor with any bank on technology'' — I can go with that — and materially better standing with the public. Who doesn’t love Amazon? Who ''does'' love the Chase Manhattan bank?
 So, should the tech giants come for banking, ’’look out''.