Lenders must learn from financial technology startups and closely monitor customer preferences to avoid the fate of other industries being squeezed by new entrants, Bank of America Chief Executive Officer Brian Moynihan said.
From block chain technology that may ease institutional transactions to retail banking data aggregators and robo-advisers in wealth management, the Charlotte, North Carolina- based bank must remain open to new ways of doing business, Moynihan said Tuesday at a conference in New York sponsored by his firm.
"I spend a lot of time with our board and our management team having people come from the outside and talk to us about what's going on and what they're doing, the peer-to peer-lending, the general lending," Moynihan said. "You just have to keep challenging yourself, and also learn from those industries that made the mistake of being complacent."
Moynihan, 56, was responding to questions about how Bank of America, the second-biggest U.S. lender, can more effectively deal with disruptive challengers than retail and media companies have. He kicked off the conference with remarks about how the industry has adjusted to demands for holding additional capital.
New capital requirements imposed by regulators are "changing the potential returns in our industry," Moynihan said, adding "we are confident" the additional capital will protect banks in another crisis.