Spectrum Insights – Bank bonds to weather disruption danger

technology

Technology is driving disruption in many industries.  Long-standing dominant players are facing extinction in retail, media and music.  The trend seekers are scouring for the next techno victim.  Some see banks as today’s financial dinosaurs destined to be pushed aside by fast-moving technology-driven financial service providers (fintechs) or tech giants.

At Spectrum, we see Australia’s banks as coming under margin and market share pressure from new entrants. Some of their peripheral businesses will also be shed to improve their competitiveness.  But we do not see disruption risk as large or rapid enough to hit the major banks’ ability to repay their bonds.

Read the full report here: Spectrum Insights – Bank bonds to weather disruption danger