The Basel Committee on Banking Supervision (BCBS) presents different scenarios in the light of emerging technology in the Banking sector

BCBS presents different scenarios in the light of emerging technology in the Banking sector. The Basel Committee on Banking Supervision (BCBS) in its latest report has analyzed the effect of Fintech firms on the emerging banking services and the future of the financial services industry.

The paper deliberated on the implication of fast changing technology on the financial industry.

The report presented various scenarios and the common conclusion across these scenarios points to the fact that the conventional banks will find it difficult to operate under current business models and future of banking will be centered on customer relationships.

The five scenarios mentioned in the report are here under:

  • Better bank: the traditional banks will replace their current operating structure with the introduction of digitization
  • New bank: this scenario will materialize in the event the incumbents were unable to survive the onslaught of disruptive new banks. The new banks will employ the advanced technology to provide cost-effective services in the innovative way.
  • The distributed bank: there will be fragmentation of services between the specialized fintech firms and the incumbent banks.
  • The relegated banks: the banking services will become commoditized and new intermediaries will be involved with customer relationships.
  • The disintermediated bank: The banks themselves will become irrelevant as the customers will be involved with individual service providers.

According to BCBS, the current pace of technology poses both the risks and opportunities for the incumbent players, even though this industry went through various phases in the past.

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.
Sarah Kaplan is an award-winning journalist with more than 9 years of experience. She is the Editor-in-Chief of She has worked for international media companies as a reporter and correspondent. She has been awarded by Article 19. She has worked for  The Guardian Foundation/ P24 Knowledge Right Project. She has participated in See Media Observatory in Macedonia. She was Research Fellow at Friedrich Ebert Foundation in Germany.  She has been writing about technology, the latest trends in business. You can reach out to her via Also, you can connect with her at Linkedin.