Narev, Chief executive of Commonwealth Bank said that Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) are posing a competitive threat to it, and could very well be considered as big three rivals for the banking industry.

Commonwealth Bank logo

“We consider we have got very, very good competitors in the major banks, we have got very good competitors in the next tier banks,” Mr Narev told the G100 Congress in Sydney on Tuesday.

Commonwealth Bank: Why Tech firms

According to Narev, the financial industry has been divided due to rapid speed of internet and the increase in the magnitude of smartphone applications. These developments have paved the way for the other companies to tap the opportunity in the market.

He further said that the competitors are a reason to worry every day but the niche players who have resources in abundance are also a big reason to worry now.

Narev said that companies like Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG), Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) and Paypal have the ability to compete by applying technology into the financial services, and there is a need to get prepared in order to tackle these competitors.

The executive said further that competition was good, and there is no harm but was unsure about the regulation and norms of the financial service sector, which will let the entry of these high-end competitors. He said that it would be worth watching.

He further cautioned that the crisis that the world has faced in the past due to certain events should not be overlooked, and there should be applications of minimum standards for every organization irrespective of its status if it is accepting public money.

Gartner hinted this earlier

 Earlier also, there was a research done by Gartner Inc (NYSE:IT) according to which the companies like Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) can be the banks of the future. The companies like Facebook Inc (NASDAQ:FB), Apple and Google will play a vital role in the banking industry in the future.

David Furlonger, who is the vice president of Gartner Inc (NYSE:IT), told at that time that one day the tech companies will overpower the business of banks.

He said that due to the growth and advancement of Internet, the brick and mortar buildings in retailing and financial services are under question and estimate that the internet dependent firms will be the future.

“The Internet companies would play a considerable role in shaping the banking industry of the future,” he said.