Goldman Sachs and JPMorgan Chase may become the biggest winners in Internet finance

Translation: Prince Gong

Autonomous Research, an independent research organization in the financial industry, said in a recent survey that investment banking giants Goldman Sachs and JPMorgan Chase are likely to become the biggest winners in the upcoming disruptive innovation of financial technology.

According to a report by Bloomberg, Brian Foran, a partner at Autonomous Research LLP, said he is inclined to bet on the two companies because they will successfully implement the latest financial technologies, such as blockchain.

Goldman Sachs has been paying attention to and investing in Bitcoin and blockchain companies, including Internet finance companies such as Circle, and has also invested in Blyther Masters' Digital Asset Holdings (DAH). Daniel Pinto, head of JPMorgan Chase's investment bank, previously stated that blockchain technology, big data and robots will be the focus of investment in 2016.

Visa and MasterCard will also benefit from the Internet financial technology revolution such as blockchain technology, because it is the best solution to the problem of high transaction costs. The report also believes that credit card company American Express may become the biggest loser because the higher transaction fees will become a pain point. Foran said:

“If financial technology makes transactions less frictional and less expensive over time, then the companies that charge the highest transaction fees will become particularly vulnerable.”

Other remittance companies, such as Western Union and MoneyGram International, will also face competition from startups that offer lower transaction fees.

Internet finance has emerged in 2015. In the future, more companies will definitely participate in Internet finance, and there will be more competition in payment, financial markets and data storage. Intensified competition will benefit customers, for example, they will pay less fees. The new Internet financial technology will replace the traditional framework and use new technology to change the traditional operation mode - from the back end to the front end - whether it is a large enterprise, bank or financial institution, it will inevitably be changed.