Born to Disrupt Podcast: The Future of Banking with Simon Hardie
In this episode of Born to Disrupt, Mark Walker and Simon Hardie discuss the past, present, and future of banking, exploring how fintech innovation, competition, and technology are reshaping the financial sector. They examine the impact of the 2008 financial crisis, the rise of neobanks, and the challenges traditional banks face in adapting to an increasingly digital world.
The 2008 Financial Crisis and the Birth of Fintech
The conversation begins with a discussion of the 2008 financial crisis, particularly the collapse of Lehman Brothers, which marked a turning point in banking. Before this event, most consumers blindly trusted banks, assuming that their money was safe and that financial institutions were secure. However, the crisis shattered public confidence, revealing that banks were not infallible and that the system itself was fragile.
This led to the rise of fintech and neobanks, with companies such as Monzo, Starling, and Revolut stepping in to offer more transparent, digital-first alternatives. Unlike traditional banks, these new entrants prioritised customer experience, innovation, and efficiency, providing services with lower fees, seamless mobile interfaces, and improved financial insights.
How Banking Has Evolved Since 2008
Since the financial crisis, banking has undergone significant changes, yet many of the industry's fundamental structures remain the same. While fintech companies have gained market share, traditional banks still dominate, controlling 80-90% of the world’s financial balance sheet.
However, fintech disruptors are growing rapidly, with some reaching valuations similar to major banks despite having much smaller balance sheets and workforces. For example, Revolut, Europe’s most valuable fintech company, has a valuation equal to Barclays, despite operating with a fraction of its employees and resources.
The Two-Way Relationship Between Fintechs and Banks
The episode highlights an interesting "two-way street" between fintech and traditional banks. Initially, fintechs were seen as competitors aiming to replace banks, but over time, it has become evident that both need each other:
Fintechs bring agility, innovation, and customer-centric solutions.
Banks offer financial stability, regulatory expertise, and large-scale infrastructure.
Rather than being in direct competition, the future of finance may depend on collaboration, with banks integrating fintech services and fintechs leveraging banking infrastructure to scale effectively.
Banking Across Different Regions: A Global Perspective
Although fintech is often viewed as a Western-led movement, banking disruption has been equally significant in Asia, Africa, and Latin America.
In China and India, fintech has flourished due to large underbanked populations and widespread mobile-first adoption.
In Africa and Latin America, fintech startups such as Nubank and Time Bank have emerged, providing financial access where traditional banks have failed.
In Europe and North America, neobanks have focused on convenience, affordability, and digital-first experiences, gradually shifting consumer behaviour.
Despite these regional differences, the overall trend is clear: the future of banking is increasingly digital, data-driven, and customer-centric.
What Lies Ahead? The Next Decade of Banking
Looking forward, data and AI will play a pivotal role in the future of banking. Traditional banks must modernise their legacy systems to stay competitive, as fintech companies continue to use AI-driven financial insights to attract customers. The key challenges facing banks include:
✅ Modernising outdated technology to improve efficiency
✅ Using AI and data analytics to personalise banking experiences
✅ Adapting to changing consumer habits, particularly among younger generations
The discussion highlights a growing concern for banks—as fintechs expand their services, they are beginning to challenge banks for deposits, lending, and investment products, not just payments. This shift poses a direct threat to traditional banking models, making digital transformation an urgent priority.
The Role of Competition and Market Disruption
One of the episode’s key takeaways is that competition will be the biggest driver of change in banking. While traditional banks will not disappear, they must innovate to survive. The hosts suggest that:
Banks should partner with fintech companies to offer more agile, digital-first services.
AI and data-driven banking will determine which institutions thrive in the next decade.
Banks that fail to modernise their technology risk becoming obsolete in the face of increasing competition.
Final Thoughts
The discussion concludes by reinforcing the idea that fintech is not just an alternative to traditional banking—it is shaping the future of finance. While banks still hold the majority of financial power, fintechs are influencing consumer expectations, increasing competition, and forcing banks to rethink their strategies.
The next five years will be critical for banking and fintech, as data, AI, and digital services continue to evolve. Banks that embrace technology, foster partnerships, and prioritise customer experience will be the ones that thrive in the next phase of financial disruption.
