The fintech revolution will bring big benefits to consumers, with a massive “societal pay-off”, but big banks risk being left behind, Jenkins said today at the Lendit Europe conference in London.
“It’s not so good for the banks because what we’ve probably seen in the period between the late ‘80s and the crash is the heyday of bank profitability and that will never return,” he said.
Jenkins founded banking technology firm 10X Technologies in October 2016 to build a unified, cloud-based platform for banks, the technology at the core of banking. Jenkins was forced out of Barclays in 2015 after three years in the top job.
Small fintech start-ups have an advantage over big banks in driving the adoption of artificial intelligence, Jenkins claimed. Large banks with multiple legacy systems often have large amounts of data spread out in different places, but combining that data can be very labour-intensive.
Jenkins said: “In almost every financial institutions that data is fragmented across many different technology stacks and it is incredibly difficult to run even machine learning on these databases.”
The implementation of new technologies will be driven by smaller start-ups rather than the large incumbents, like Barclays, Jenkins claimed.
Those technologies include “transformational” technologies using distributed ledgers and artificial intelligence, Jenkins said.