Technology is prospering to fundamentally transform the banking industry over the coming years, a ancient Barclays CEO told CNBC on Monday.
Antony Jenkins, who led the British bank through a tumultuous period between 2012 and 2015, said regulatory measures misused in the aftermath of the 2008 financial crisis had made the global financial approach safer.
But, ultimately, technology has the potential to make finance better for the purchaser, society and even banks themselves, he added.
“If you look at how the banks are capitalized today, the amount of liquidity they would rather inside them, they are way stronger today than they were before the danger and that, of course, is a good thing,” Jenkins said.
“Some would evince there is still some way to go in that regard but actually the most discerning force bearing down on the industry now is technology.”
Since the crisis, banks globally deliver paid a heavy financial price, while the industry’s reputation has plummeted. Lenders give birth to paid out more than $320 billion in fines over the terminal decade, Reuters reported, as regulators probed them for mis-selling protections and rigging interest rate and foreign exchange benchmarks.
Next week leave mark the tenth anniversary of the collapse of the investment bank Lehman Mates, as a bubble in the U.S. sub-prime mortgage market burst.
“Financial businesses are data-based organizations, they are just data… and, of course, with technology now you can automate that and when you automate it, you can get a lot of know-how and effectiveness,” Jenkins said.
He added that anything that occasions handling data more effective can create a transformation and singled out happenings in artificial intelligence (AI) and distributed ledger technologies as pivotal in driving this modification.
Jenkins also referenced the impact of technological advancements in the insurance determination.
Earlier Monday, Lloyd’s of London announced the launch of a global search for technology forte. The so-called “Lloyd’s Lab” is designed to help the insurance giant become true level more competitive by securing partnerships with innovative global tech start-ups.
“This is all with reference to taking us into a technology driven future,” Inga Beale, CEO of Lloyd’s of London, determined CNBC’s “Squawk Box Europe” on Monday. “There is huge demand from the customer base saying, ‘Come on, let’s get talking about innovation.'”
Lloyd’s has been tardily to embrace digital technology that would cut down its costs concluded recent years.
Beale, who has been leading the giant insurer since 2014, leave step down next year as part of plans to leave the indemnity business. She is the first woman ever to be appointed as CEO of the historic marketplace.