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Dimon says ‘fintech and big tech are here’ as banks lose ground

American Banker

Jamie Dimon, who built the biggest and most profitable U.S. bank in history, is warning shareholders his industry’s disruption by technology is finally at hand. Shadow lenders are gaining ground. Traditional banks are being consigned to a shrinking role in the financial system.

“Banks have enormous competitive threats — from virtually every angle,” the JPMorgan Chase Chairman and CEO wrote in his annual letter to shareholders Wednesday. “Fintech and Big Tech are here… big time!”

The letter expands on predictions Dimon has offered for years, this time declaring many of those threats have now arrived. Financial-technology firms are more formidable, offering easy-to-use, fast and smart products, he said. Shadow banks — a group that includes investment funds and online platforms offering financing to companies and consumers — are winning market share too.