We’re in the midst of one of the largest transformations in banking history. Today, a coffee company runs one of the most successful mobile payments systems in the world. Large retailers are offering loans directly to consumers. Internet firms are wrapping financial products around their core services. Lending is going social, and disruption is everywhere.
Banks are up against a new reality in which fast-changing consumer behavior and financial technologies are roiling traditional ways of doing business. Tomorrow’s loan and mortgage products will be decentralized and crowd-sourced. Social finance will become widespread, touching all aspects of banking — from borrowing to investing. Robot advisors will prevent consumers from making unsound financial choices, and will do so in real time