The Daily Fintech and its leader writer Bernard Lunn don't do hype and do do sense. It remains intelligent and not up itself. That makes it worth listening to when it says Alibaba is going to gobble up swathes of global markets, unbundling the banks along the way. The banks are powerless, trapped by their legacy operational, IT, and mental chains and exposed for their moral emptiness.
Small fintech companies may just nibble, but Alibaba will bite the banks in the neck.
Why Alibaba reckons that the future of banking rests with banks that cannot lend ....These are mobile current/checking accounts. They can accept payments in (eg salary and remittances) and make payments out. These payment banks cannot lend. OK, no threat to the existing banks then? This is the unbundling of full service banks in action. ....Alibaba is one of those tech giants that really worry the banks as they move into banking. ... They are the Amazon + eBay + Paypal of China (and by combining all three they create totally new value propositions). And soon ... the rest of the world. ... This kind of mobile checking account is already happening among the Underbanked in the West. This is the innovation that excited me when I spotted Ffrees in the UK in November last year. By Bernard Lunn