Mark Carney is worried about an “imminent” Uber-ization of banking. He’s right of course apart from the fact that banking is not about to be Uber-ized imminently. The Uber-ization is taking place right now. Looking for a place to deposit your savings? LendingClub or Prosper will let you create a properly diversified portfolio of loans, paying more than Megabank’s 0.2%, providing you can beat the institutional investors to the best deals (you may need Orchard to help you source deals). Use Transferwise for currency exchange. Keep your money in an e-wallet. Need investment advice? Use a robo-advisor like WealthFront. It’s not just consumers; companies seeking funds can borrow from hedge funds on electronic platforms, or sell to small investors directly. Fintech companies and the shadow banking system have everything you need, with the possible exception of “classic” business checking accounts (if you know of anyone providing those services in a non-bank setting, some cannabis companies would be interested).
Banks are getting disrupted not just by disintermediation but also dismemberment. It turns out that the various elements in the package of services we used to think of as “banking” can be provided separately and less expensively online. I don’t know why anyone is bothered about “breaking up the banks” when technology is doing that pretty effectively in real time.