I have been underweight banking sector for years now and even if it bounces back from time to time, this is the best decision I took (as well as being underweight oil and gas).

Technology is literally killing the banks monopoly on money 💰. Also these dinosaurs are not able to adapt compared to new tech and light competitors (online bank…) as they have a heavy structure with millions of physical branches with never ending back offices and so on.

Their size is now a competitive disadvantage and a lot of people will continue to get fire from this industry.

Finally, where does the profit comes from in a bank?

Mostly from fees and credit loans. Fees are getting eaten up by the Revolut of this world. Credit loans are very competitive and I did mine entirely online.

If you work in a bank… start looking for a plan B

Posted Using LeoFinance ^Beta