According to Tom Stafford of DST Global, global banks are in the middle of a significant transformation. They’re moving from retail banking to wholesale banking for other institutions and financial markets, which exposes them to new risks and opportunities. The change has been prompted by pressures such as regulation, loss of customer trust, increased agility from competitors, and the need for radical innovation – all while remaining committed to their core activities.
The opportunity, Stafford explains, is enormous. “It’s not the banking business that will change, but the market they serve. That’s a very healthy thing.” He explains what the next steps will be and their implications.
Stafford explains why there is so much activity in banking innovation and highlights some significant trends. He says financial technology will be “the gateway to new products and services in a regulated environment.” Innovators will have many opportunities to take advantage of the data banks already have.
DST Global’s Tom Stafford at MoneyConf 2018 said that banks would need help to get out of retail banking, which is the business they know and love, but that after that comes wholesale banking, which is dramatically different. MoneyConf 2018 was held in Dublin, Ireland.
Stafford outlines some of the opportunities available to banks and points to the new models being developed across financial markets and institutions in response to challenges posed by GDPR. He says compliance is a big challenge, but the upside is enormous.
Tom Stafford takes a long-term view and believes that the enormous changes in financial markets will lead to significant economic growth.
He says that moving away from the traditional banking model will lead to a greater focus on mitigating risk, which is only suitable for society. He says it’s all about creating new value and new markets.