Banks ask for more regulation to save them from Uber-like services | What's Left
Banks are asking for regulators to save them from new technologies that might undermine their profitable business models.
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In a move that can only be expected from financial organizations that drowned the global economy to save themselves, Banks who act as cheerleaders for anti-worker (and sometimes illegal) actions of companies like Uber are demanding to be saved from the same disruption.
A new report from McKinsey financial consultants shows that emerging technology companies are focused on inserting themselves where money transactions occur – at the cash register. Banks currently get much of their profit from fees charged at points of sale, credit cards and car loans. McKinsey shows those profits could drop 40-60%.
The same pressures on banks are being felt in other industries as costs for services are reduced through insertion of technology that either replace workers or make it easy get around slow-to-evolve regulations. Financial service transactions are where banks gain 22 per cent return compared to just six per cent from holding and investing your money.
Hypocrisy, it seems, is not in a bankers dictionary.
More: McKinsey warns banks face wipeout in some financial services