“Last year, most chief executives thought that regulation would deter new entrants as core banking and other regulated parts of financial services had become less appealing,” says Mr van Steenis. “Now there’s a growing sense that new entrants can skim the cream and expose the banks’ high legacy cost bases. Banks are much more nervous about being left with high costs, highly-commoditised processes and not much growth.”

Source: Start-ups erode traditional bank activities – FT.com