As the narratives about the future of banks seem to lack of theoretical rigour, the paper undertakes a very fundamental analysis of what economic theories can tell us about the future of banks. The New Institutional Economics portrays new challengers as perfecting the market and thereby sidelining the more passive banks, which could lead to their demise. This gloomy narrative is critically discussed and contrasted. By re-evaluating concepts such as uncertainty, trust, and power, a more nuanced perspective emerges. Banks may have a greater agency and potential for success than previously thought, challenging the pessimism about their future.
