Breaking the Bank: BCV's Matt Harris on Why Banks Are in a `Whole Heap of Trouble' from the Newcomer Banking Summit
Bain Capital Ventures' Matt Harris delivered a crowd favorite presentation on why generative AI is a big threat to banks at the Newcomer Banking Summit
Bain Capital Ventures’ partner Matt Harris gave a crowd-favorite presentation at our banking summit, warning about a “whole heap of trouble that the banks have coming at them.”
He outlined a number of near-term problems for banks: “This problem of rates move up and securities are worth less has continued to get worse not better,” Harris said. Meanwhile, many regional banks are holding a bunch of troubled commercial real estate.
But the real problem Harris identified is that artificial intelligence is going to make it much easier for banks’ customers to shop for financial products and to incessantly hunt for the best rates.
“Banks will be incrementally assisted by generative AI and then they will be destroyed by the fact that everyone else will have it,” Harris said. “Their entire business model depends on inertia and opacity and latency — and all those things will go away.”
You should watch the whole presentation on our YouTube channel.1
The full slide deck is below for paid subscribers.