Financial regulation treats banks as protected species. This prevents long overdue structural change. The way forward is a fintech license. But current proposals, such as the latest one by the Swiss government, are not comprehensive enough.
The digital revolution causes sleepless nights among managers of the “old economy”. Successful business models are increasingly disrupted by the geeks from Silicon Valley. People do no longer hail cabs, they Uber, and travel offices have become rare and deserted places. However, one industry has resisted successfully the disruption from digitalized competitors so far: the financial industry. The very same banks that have existed one hundred years ago still dominate the financial sector.