A major competitive reversal for banks is unlikely, thanks to Fintech, Moody's Investors Service concluded in an assessment of fintech themes yesterday."But several forces could shift the scales or accelerate the transformation of the industry," the agency added."Fintechs have had a head start as banks parry a number of challenges," Moody's explained."Bank revenues are broadly constrained by weak economic growth and low interest rates." Moody's listed four impediments to a more nimble response by the banking sector to Fintech.These were: expenses that "are stubbornly high owing to some overhang of bad loans"; regulatory compliance costs; balance sheet reconfiguration; and IT remediation."In some instances, these pressures are forcing banks to realign business models, geographic scope and strategy," Moody's wrote."The large Millennial cohort" is the contested landscape relevant to the fintech attack on bank business model.This mob "is typically more open to, and often expects, digital services and interfaces," Moody's said. "Fintechs have had some initial successes, primarily in individual business lines, keeping overhead low and operations nimble. "But fintechs have yet to prove their resilience through a range of economic and financial market conditions."In a nod to incumbents, Moody's wrote they "are already responding, and they have several inherent advantages. "Many banks are well advanced in developing and implementing their own digital strategies. "Others are partnering with fintechs to leverage their models and capabilities, fill product gaps and/or appeal to new customers."