Jamie Dimon, JPMorgan Chase chairman and CEO, listed fintech as one of the “enormous competitive threats” to banks in his annual shareholder letter released Wednesday.
“Banks ... are facing extensive competition from Silicon Valley, both in the form of fintechs and Big Tech companies,” like Amazon, Apple, Facebook, Google and Walmart, Dimon wrote, and “that is here to stay.”
Fintech companies, in particular, “are making great strides in building both digital and physical banking products and services,” Dimon said. “From loans to payment systems to investing, they have done a great job in developing easy-to-use, intuitive, fast and smart products.”
This, in part, is why “banks are playing an increasingly smaller role in the financial system,” he said.