In a recent letter to shareholders, JPMorgan CEO Jamie Dimon warned of growing competition for Wall Street in the form of tech start-ups. Don't expect the incumbents to give up easily.
“Silicon Valley is coming,” Dimon said in the letter, which touched on technologies as varied as mobile payments, bitcoin and peer-to-peer lending. “There are hundreds of start-ups with a lot of brains and money working on various alternatives to traditional banking,” the CEO warned. Indeed, there’s been a boom in start-ups seeking to compete with banks in stock trading, lending and payments. LendlingClub, for example, received a lot of attention when it went public in December. The company acts as a kind of Kickstarter for loans, matching borrowers with lenders. Research firm CB Insights recently wrote about dozens of so-called “FinTech” startups that are “attacking” products and services traditionally provided by banks, including Jack Dorsey’s Square,.