Lastly, competition from nonbanks could also increase in
the payments and business lending space, as they continue
to benefit from limited regulatory constraints. Some of
these nonbanks from the technology sector are leveraging
innovative technologies and proprietary customer data to
fuel growth. Others that have developed peer-to-peer and
crowdfunding platforms may evolve and grow in 2014.
However, traditional banks may retain their edge in chosen
specializations through their scale of operations, “regulated
entity” status, and greater customer data advantage.