Fintech stands to have a profound impact on the financial services industry, but how that impact will take shape was the key topic during Wednesday’s “Transformation of Finance” panel discussion at the World Economic Forum in Davos.
Morgan Stanley Chairman and CEO James Gorman conceded that regulation still crowds on his inbox, but stressed the importance of keeping an eye on fintech. “If you are not focused on how some of these innovations are disrupting different parts of the financial system and how you can embrace them and use them to win business, not just defensively, then you are not doing your job,” Gorman said.
Deutsche Bank Co-CEO John Cryan said technology will revolutionize payments so dramatically that he predicts cash won’t exist in 10 years because it is “terribly inefficient and expensive.” Cryan added that he expects block chain technology to be used not only for financial transactions, but also for digital identity purposes.
Zurich Financial Chairman and CEO Thomas de Swaan said technology will optimize the insurance industry, but not make big firms obsolete. “I have not spoken to any disruptors who want to take the insurance risk on his balance sheet.”