Bloomberg hosted an exclusive breakfast today in Singapore with more than 55 of the region’s leading business and banking C-suite executives coming together to discuss the Future of Banking with Vikram Pandit, moderated by Haslinda Amin.
As founder and CEO of operating company Orogen Group and the former CEO of Citigroup who steered the bank through the 2007 financial crisis, Mr. Pandit spoke in-depth about the changing landscape of global finance, impact of new technologies and the future for Asia’s financial markets, which are undergoing major transformation.
Mr. Pandit highlighted how the level playing field of capital has changed, that while the institutional banking structure is shifting, the ability to meet customers’ needs is going to determine the competitiveness of financial institutions in the future.
Amid the changes taking place in global finance, he pointed out that the constant will be continued competition in the banking sector. He said the battle between incumbents and challengers will be fought around how well companies know their customers, and how they can deliver financial services – whether it be payments or mortgages – in a more efficient, transparent way.
As the banking sector and technology collide, Mr. Pandit highlighted the rise of technology as not just a disruptor in the banking sector, but a phase of modernization that many banks are undergoing to upgrade their back-end operations.
Looking ahead 10 years from now, Mr Pandit said banks will not disappear, but parts of their services may be unbundled. The future of banking will see both consolidation and fragmentation. The pace of innovation, he believes, will continue accelerating, and the banking industry will one day evolve into a decentralized network of specialized firms serving specific customer financial services needs. He noted that regulators and regulation would be a steering factor in the pace of this change.
In opening remarks for the session, Andrea Mosconi, head of Bloomberg ASEAN, set the scene for the discussion, noting that the two biggest factors shaping the global banking sector are regulation and technology. Participants were engaged in a discussion on the role of financial regulators in creating competition and encouraging innovation.
The Future of Banking is part of Bloomberg’s Future of Finance event series catered exclusively to C-suite and business leaders.
Watch Vikram Pandit’s interview on Bloomberg Television and read Bloomberg News story here. [“Pandit says 30% of bank jobs may disappear in next five years”]