Some segments of the value added chain have migrated to fintechs, eroding banks’ revenue streams in those areas. And as for tapping fresh sources of earnings such as alternative payment procedures, traditional credit institutions are already lagging behind the “new kids on the block".
1/4  BIS central bankers' speeches  The debate surrounding the low levels of profitability in Germany’s banking industry inevitably returns to the role played by regulation. In the pre-crisis era, there were undoubtedly a number of regulatory blind spots which many institutions capitalised on to engage in excessively risky transactions. This behaviour has taken its toll on the entire economy.