… a recent study from fintech vendor Accenture predicts that U.S. banks could lose 35% market share by 2020 to new competitors ranging from small payments firms to Internet giants, like Google, to retailers.
That one line (in a much larger story not even about the report) caused Theodore Iacobuzio, who is the vice president in charge of Global Insights at MasterCard’s interdisciplinary thought leadership organization, to strike back :
… what the Accenture study points to is real, and a real competitive dynamic: “Another 20 percent could shift to retail-driven players with a mass-market focus—under partnerships between big-box retailers and banks, and potentially independent ventures by retailers.”
Nuclear winter gets reduced to a “potentially”. So much for the big bad 35 percent. And the original American Banker story was about a payment app from….U.S. Bank.
All of this heat and noise in my opinion unintentionally obfuscates the real situation, which is less a threat than a fact of life: competition is increasing pricing pressure, pushing margins down across the payments ecosystem. The question these predictive stories need to answer is: what are we going to do about it?
You can read the Accenture release and find the larger study, here.