Wall Street banks' defense system against a growing onslaught of start-ups is working, according to a Moody's report, which says that while banks may lose some market share to financial technology competitors, industry incumbents will survive.
Banks have two big things most fintech, companies do not: enormous user bases, and sizable credit underwriting capabilities. While more start-ups may partner with big Wall Street firms, the Moody's report said it is highly unlikely that they'll ever overtake big banks.
"We expect banks to retain a place at the center of the financial services industry, working both alongside and in competition with fintechs to improve the development and delivery of financial services," Moody's analysts wrote Wednesday.
It's a sign that as various American industries are being disrupted by digital competitors, the banking industry — partly due to its vast funds, partly to it being more heavily regulated, and partly because traditional banks offer a broader range of services — will be able to stave off fintech's recent surge in popularity.