Revelations that several global banks failed to flag suspicious activity is once again casting a shadow over the industry. Throw in paltry interest rates killing the profitability of lending, plus the prospect of widespread loan defaults, and it’s not surprising London’s banking shares are cheaper than at any time since the 2008-09 financial crisis.
By contrast, technology stocks have soared in 2020 and the future of finance is also where digital revolution meets the business of money. That doesn’t just mean banks; insurance, payments, alternative lending, wealth management and even real estate are all touched by the proliferation of financial technology start-ups.