podcasts | ‘Banks are becoming less and less necessary’
Mujagic mainly looks at the technical aspect of what these clients offer. ‘The gold of the future is data, your customer data helps with that. Apple has about 125 million users in the US, while more than 330 million people live there. So there is still something to be gained for this.’ The fact that Apple now wants to enter financial markets will come as a shock to traditional banks, Mujagic thinks. ‘Banks will increasingly have competition from non-traditional angles.’
“Banks have traditionally been something of a lifeline of our economies”
The economist proposes a scenario in which banks become ‘less and less necessary’. ‘Payments are already largely handled outside the banks, and nowadays you can even take out a mortgage loan with non-banks.’ The situation has therefore completely changed for the banks. ‘They come from a time when it was quite easy to make a profit, because people didn’t know the alternatives and it was very difficult to change. But that has completely changed,’ says the economist.
Behavior changes
Not only the financial sector could be affected by these changes. ‘Banks have traditionally been something of a lifeline to our economies. And when we talk about the economy, we’re talking about money in circulation and money we borrow to spend. Both initially went through the banks, which is happening less and less now. Consumer behavior around money will change accordingly, Mujagic expects. ‘Now it’s much easier to borrow money from the capital market than from a bank. This also means something for a bank’s business operations.’
This is good news for citizens, Mujagic says. “No wonder if a bank is taken over by a non-bank in the future.”