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
