Bridges and Tunnels are the New Moats in Finance

Writing in Forbes Ron Shevlin of Cornerstone Advisors talks about moats in financial services and where banking is headed for the 2020’s; there have been many investors and analysts who have stated that banks were protected by unbreachable moats; this has also become a hot trend amongst VCs who are looking for fintech startups creating moats; in reality the reason banks have enjoyed moats is primarily based on regulation, it is not easy for a non bank to obtain a banking license; though fintech firms and big tech have figured out that you don’t need a license to offer comparable services with the advent of banking as a service or embedded finance; the key to the future in banking is to create bridges and tunnels through API based connections along with serving a targeted customer base; know who your customer is, what your customer needs and serve them where they live and work. Forbes

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