New technology such as artificial intelligence and blockchain will utterly shake up the fundamental principles of banking, challenging the entire industry according to former Barclays chief Antony Jenkins. He believes the innovation in finance could eliminate the need for maturity transformation – the process by which short-term deposits, such as current accounts and instant access savings, fund long-term loans including mortgages. That is a fundamental principle of the industry as banks can offer a low interest rate to savers while charging more to borrowers, profiting from the gap between the two rates.
Blockchain technology will “utterly shake up” the entire banking industry, according to ex-Barclays boss Antony Jenkins. The former chief executive of Barclays, who is now a partner at law firm DLA Piper, said that blockchain, which has been around for about two years, could be used by banks and other financial Mr Jenkins also spoke about the risk to branches and employees from the rise of online and mobile banking, as well as the dangers of “aging computer systems”.