Lending Times, an online publication that specializes in writing about Fintech lenders, reported the following: “In a pessimistic new report, researchers from Morgan Stanley have concluded that while Fintech companies style themselves as disruptors they will do more to strengthen than undermine incumbents in the long term.” The Morgan Stanley research stated, “As incumbents [e.g, financial institutions] pick up investment while VCs reduce investment, we tilt towards a world where incumbents are less susceptible to disintermediation and more likely to co-opt new technologies.”

Although some do not seem to realize it, related to Fintechs banks are in the driver’s seat. Why? Fintechs may need banks even more than banks need Fintechs.