Drilling down into the competitive landscape between traditional financial institutions (FIs) and digital upstarts, Dimon said that non-banks — from payments companies and fintech companies to exchanges and Big Tech — are directly competing with banks and do so while operating outside the banking regulatory system. Dimon also noted that as much as $130b was invested in FinTech last year, which has allowed them “to speed things up — and at scale.”
“The growing competition to banks from each other, shadow banks, FinTechs and large technology companies is intensifying and clearly contributing to the diminishing role of banks and public companies in the United States and the global financial system.”