From Suits to Satoshi: Bankers Flock to the Crypto Industry
Even in the face of regulatory challenges and the persistent downturn of 2022, former bankers who've made the shift to the crypto industry, particularly those from the traditional finance (TradFi) sector, seem uninterested in reverting to the old fiat-banking system.
Over the past 5-10 years, a considerable number of professionals from the TradFi industry have switched from commercial banks to blockchain-based startups. Remarkably, those who have dared to make such a transition are typically mid to senior-level managers, who held influential positions and enjoyed substantial compensation packages, well above the market average.
So, what's drawing these individuals to cryptocurrencies and decentralized finance, prompting them to step out of the familiar territory of traditional banking?
Former Head Of Innovation at NAB
Lisa Wade, now serving as CEO of blockchain company DigitalX, formerly served as the Head of Innovation and development at the National Australia Bank (NAB). However, she made the decision to pivot to the crypto industry in December 2021.
Wade argues that in comparison to the banking sector, the digital asset industry offers a broader scope for freedom and innovation.
It’s becoming very obvious that Web3 financial rails are the future: it’s hard to innovate internally, so the brave ones are jumping ship.
She projects that cryptocurrencies will permeate the daily lives of the majority within a few years, predicting the dawn of widespread adoption in about a decade, if not sooner.
Lisa is firm in her belief that the crypto industry presents opportunities to establish something of magnitude, an achievement she deems improbable within a banking setup.
Former Executive Director at HSBC
Guy Dickinson, serving as the CEO of the green crypto startup BetaCarbon, which issues the BCAUs token, was the Executive Director at the Australian office of HSBC, the international banking group, until 2022.
Dickinson shares that his motivation to transition from traditional finance to the crypto industry wasn't financially driven, but rather a quest for personal fulfillment in a fresh, exciting domain. He also acknowledges the perceived gradual yet inexorable decline of the banking system playing a key role in his decision.
The banking sector is dying slowly. Ongoing layoffs and technology efficiencies jeopardize many professional services functions. A senior bank official always has a target on his back in the current scenario.
Banking System's Biggest Shortfalls - Rigidity and Over-regulation
Another “convert”, former banking executive Simon Dixon, currently acts as the CEO of BnkToTheFuture, an investment platform directing funds towards promising fintech and crypto firms.
Back in 2011, Dixon's attempt to establish a traditional bank revealed it to be a risky venture, with some of the regulator's requirements bordering on the absurd.
When we applied for a license, we were told by regulators that we had to store our funds in another fractional reserve bank and that it is only profitable if we leverage customer funds like all banks do.
Dixon was soon captivated by Bitcoin (BTC), especially intrigued by the fact that all funds are stored in the owner's non-custodial wallets and transferred directly between users, bypassing intermediaries like banks. This discovery proved to be life-altering, significantly influencing his decision to depart from the banking sector.
Undoubtedly, there are More Examples
Two other executives from financial giant JPMorgan, Eric Wragge and Puja Samuel, have departed the firm to further their careers in the crypto industry.
Wragge, who occupied a senior role at JPMorgan, decided to join the Algorand (ALGO) team as the Global Head of Business Development and Capital Markets.
Samuel, who stood at the helm of the digitization department at JPMorgan, joined the Digital Currency Group, a crypto investment company, as the Head of Corporate Development.
As we can see, there are plenty of such examples in all developed countries. The massive migration of managers from the TradeFi sector to the DeFi/Crypto/Blockchain segment is gradually becoming a trend.
