IMF warns banks to evolve or be ‘left behind’ amid competition from big tech firms
16 Jul 2019

Banks must evolve or risk being “left behind” as big tech companies shake up the financial system, according to new research from the International Monetary Fund (IMF).

In a paper published Monday titled “The Rise of Digital Money,” IMF authors Tobias Adrian and Tommaso Mancini-Griffoli said the two most common forms of money today, cash and bank deposits, will “face tough competition and could even be surpassed.”

But banks are “unlikely to disappear” as they face growing threats from big tech companies and fintech start-ups, the paper said.

“Some will be left behind no doubt,” the authors wrote. “Others will evolve, but must do so quickly.”

The research was published as central bankers and policymakers debate the role that tech companies and digital currencies will play in the banking and payments system.

Facebook’s announcement that it will launch a cryptocurrency called Libra has been met with skepticism from many officialsaround the world. In congressional testimony last week, Federal Reserve Chairman Jerome Powell said Libra raises “serious concerns” around privacy, money laundering, consumer protection and financial stability.

By Elizabeth Schulze, CNBC, 15 July 2019

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One Response to “IMF warns banks to evolve or be ‘left behind’ amid competition from big tech firms”
Keslyn Gilbert

Keslyn Gilbert July 16, 2019

Issues to watch. How do we adopt and adapt in this changing digital world but maintain consumer protection, protect financial institutions good will, brand and still continue to grow the customer base?

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