Banks must behave 'more like technology companies' to survive, finance execs say

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Several fintech start-ups have gained popularity with app-based checking accounts, while tech giants are also making moves in the space.

Dave Zhong | Getty Images for CNBC

Banks must operate more like technology companies in order to stay relevant for years to come, executives in the financial services industry say. "I happen to believe that many banks, perhaps not all, are well-positioned to build brand new products," David Rafalovsky, chief technology officer at Russian state-owned lender Sberbank, said during a panel at CNBC's East Tech West event in Guangzhou, China on Monday.

Rafalovsky expressed frustration with the categorization of fintech, or financial technology, firms as separate to — and a threat to the existence of — the banks. "We are fintechs," he said, adding major lenders are "no less" fintech than the technology upstarts. A flurry of new players have entered the market looking to compete with established banks. In Europe for instance, app-based checking accounts from the likes of

 

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