Is the future of banking in doubt?

VNU Net reports on a recent Gartner report, which has some quite radical conclusions:

Ten or 15 years ago, people trusted banks. Nowadays banks in the UK realise that most of their customers don’t actually trust them. They don’t even like them. They only use them because they know there isn’t really an alternative,” he said.

“Banks are a classic case of [a business where] their whole livelihood, their ability to trade, is about being trusted. They used to be trusted, but they’re not anymore. They’re tolerated.

“If I wanted to look 20 years out, I would say there will not be a banking industry as we know it today. Most of the functions that they carry out will be handled by online or electronic brokerages.”

Open markets like eBay, where individuals build up their own trust levels, would replace the existing system, according to the analyst.”