Digital financial landscape threatens banks’ role as intermediaries

Moody's Talks - Focus on Finance

Stephen Tu, Melina Skouridou and Farooq Khan explain how four forces reshaping finance will likely reduce banks’ revenue from core activities and undermine their role as financial intermediaries. Plus, Alka Anbarasu explains why India’s banks will weather the stress from a COVID-19 resurgence, and Jasper Cooper gives an update on insured hurricane losses in the US.

Inside this episode:

• Alka Anbarasu explains why India’s banks will weather the stress from a COVID-19 resurgence. (begins at 1:55 mins)
• Jasper Cooper gives an update on insured hurricane losses in the US. (begins at 4:48 mins)
• Stephen Tu, Melina Skouridou and Farooq Khan explain how four forces reshaping finance will likely reduce banks’ revenue from core activities and undermine their role as financial intermediaries. (begins at 7:11 mins)

Related content:

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• Financial Institutions – Global: Four forces reshaping financial landscape have potential to dislodge incumbents - We identify four forces of digitalization that have the potential to dislodge incumbents from dominant positions in financial markets.
• Banking – Global: Central banks aim to limit disruption when designing retail digital currencies - Banks would likely maintain their client-facing roles and would play a part in disseminating central bank digital currencies (CBDCs), but disintermediation risks will be heightened.
• Banks – Cross Region: Wide use of digital currencies in cross-border payments would be credit negative - Potential future wide acceptance of central bank digital currencies in cross-border payments and settlements will result in lower fees and commissions for banks.