Big tech threat stares down at banks

Australian banks are facing a huge threat from Silicon Valley challengers that are bringing together the best customer experiences and world-leading technology, the chief executive of neobank Up, Xavier Shay, says.financial software company and partner Ferocia,Up chief executive Xavier Shay says banks have every reason to be scared of losing business to tech giants.

“If you’re not afraid of Square, then you’re not paying attention,” he said. “It’s not just Square, it’s pretty much all of the big tech players in Apple, Google, Amazon, Square and I think they’ve all got the same end game.”Mr Shay said the big tech companies were more focused on the business banking market in Australia than retail banking, but the fact they were already working with customers doing processing work would help give them a leg up in customer acquisition.

Announcing its staggering investment, JP Morgan Chase said Silicon Valley “may dominate the headlines” but it considered itself a strong contender in “emerging” technology.“Being large and well established can be a burden for many companies, especially in industries swarming with nimble tech start-ups,” the US bank said in a statement.

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