Special report | Banks v big tech
How fintech will eat into banks’ business
Bankers, once kings of capital, may be dethroned by payment platforms
“THE DISTINCTIVE function of the banker ‘begins as soon as he uses the money of others’; as long as he uses his own money he is only a capitalist,” wrote Walter Bagehot in 1873, quoting Ricardo. This distinction may seem outdated. Institutional investors (hedge funds, mutual funds, pension funds, private equity) all use other people’s money. Yet Ricardo’s point matters.
This article appeared in the Special report section of the print edition under the headline “Regime change”
From the May 8th 2021 edition
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