As the financial sector undergoes rapid transformation, banks are facing a fundamental identity crisis: they continue to frame themselves as conservative institutions, while their core business increasingly relies on technology, data, and digital infrastructure.
For decades, banks have positioned themselves as guardians of trust, compliance, and financial prudence. Yet behind the curtain, nearly every operational layer—from customer onboarding to fraud detection, payments, lending algorithms, and trading platforms—now depends on complex, evolving technologies. In 2025, pretending otherwise is not only inaccurate, it is potentially dangerous.
Modern banking is inseparable from technology. Digital wallets, biometric authentication, AI-based credit scoring, blockchain settlements, and cloud computing underpin the very fabric of financial transactions. Some banks manage more developers than traditional bankers. JPMorgan Chase, for instance, employs tens of thousands in tech roles, runs global data centres, and has launched its own AI tools. Still, many major institutions resist the label “tech company”.
This reluctance creates a cultural and strategic mismatch. By refusing to embrace their tech identity, banks often underinvest in innovation, undervalue their IT teams, and lag behind fintechs in speed and agility. The gap has allowed challengers—from Revolut to Nubank—to redefine the banking experience, particularly for younger customers who expect real-time, mobile-first services.
It also has regulatory implications. Banks want the protection and prestige of traditional oversight, while deploying tools that rival Big Tech’s capabilities. This inconsistency muddies the regulatory environment and may expose customers to risks if systems are not properly governed or understood by bank leadership.
Recognising themselves as tech firms does not mean abandoning banking fundamentals. Rather, it means acknowledging that infrastructure, user experience, and data security are now just as important as capital ratios and interest margins. With rising cybersecurity threats, regulatory scrutiny over AI use, and a shift toward open banking models, banks must lead—not follow—in responsible tech adoption.
The shift also matters for talent. Young engineers and digital designers often prefer Big Tech firms or agile fintechs. If banks continue to see technology as a support function instead of a strategic pillar, they risk missing out on the next generation of innovators who can build resilient, secure, and user-centric systems.
Some institutions are adapting. Goldman Sachs has invested heavily in platform-as-a-service initiatives. BBVA has integrated open APIs across its systems. DBS Bank in Singapore is often cited as a leader in digital transformation, openly calling itself a tech company with a banking licence. These examples show that progress is possible—when mindsets change.
In an era where financial services are delivered via code, platforms, and algorithms, the pretence that banks are not tech companies no longer holds. The question is not whether banks use technology—it’s whether they are willing to govern, invest in, and structure themselves like the tech-driven firms they already are.
REFH – Newshub, 5 August 2025
