Rich Ricci, the former head of Barclays investment banking and right-hand man of Bob Diamond, has warned that fintech startups will snatch market share from established financial institutions and change the landscape of banking.
Efforts of big banks to innovate will continue to be thwarted by their archaic technology as they face increasing competition from more nimble startups, said Ricci, writing exclusively for City A.M..
“As innovative as traditional financial institutions try to be, they will continue to be hampered by their legacy systems and processes,” said the former bank executive turned fintech investor.
Ricci, also now known for his involvement in horse racing, boasts a handful of investments in fintech startups and will likely invest in more.
A source close to him told City A.M.: "Rich likes to invest in fintech companies with talented management teams, those with strong products that have the potential to cut through crowded markets and which would benefit from his resources and expertise to develop their businesses."
Ricci, who spent nearly two decades at Barclays, believes fintech startups are at an advantage over banks, being able to “move faster, learn faster, react faster to market, regulation and technology changes “.
"I see the banking landscape continuing to change rapidly as fintech companies with viable products, talented management and clever marketing using traditional and new media take market share," he said.