Key points from the talk by Sir Howard Davies (Chairman of the Royal Bank of Scotland and the former Director of London School of Economics):
⁃ More cash has gone into shadow banking which is less regulated and transparent.
⁃ Big tech (like Google) is keen on fintech. The question is whether fintechs can get clients before banks get innovative.
⁃ People are happy to transact with fintechs but prefer to deposit money with banks.
⁃ Most banks spent majority of the last decade on internal processes and not on the client.
⁃ Why is India still stuck with the 86 year old RBI act? Also, state domination of banking is not good.
⁃ His main worry is the growth of credit through non regulated entities.
About Howard Davies: British economist and author who is chairman of the Royal Bank of Scotland. He also is a professor of practice at the French School of Political Science in Paris (Sciences Po). Previously, he served as director of the London School of Economics and Political Science and chairman of the UK Financial Services Authority. Sir Davies has also served as deputy governor of the Bank of England and director general of the Confederation of British Industry. Earlier in his career, he worked at the UK Foreign and Commonwealth Office, the UK Treasury, and McKinsey & Company, and he also served as controller of the UK Audit Commission. Sir Davies is an independent director of Morgan Stanley Inc. and chairs its Risk Committee. He also is a board member and chair of the Risk Committee at Prudential plc.