Former Morgan Stanley CEO and well-known financial figure James P. Gorman frequently considers the future of financial institutions. According to him, banks play two vital roles in sustaining economic activity: they collect money from savers and investors and distribute it to people in need of money for a variety of reasons, like launching a business or financing a project; and they facilitate transactions by handling payments between buyers and sellers.

It would be like attempting to run a marathon without shoes if society didn't have banks. Banks serve as the cornerstone that makes financial transactions less hazardous and more seamless, much like shoes shield your feet and make running easier and more effective. Without this infrastructure, finding compatible partners to exchange money or assets would be difficult for both individuals and businesses, making daily transactions difficult.

Gorman contends that traditional banking will not go away in spite of technological developments like digital currencies and smartphone payment apps. Instead of replacing the vehicle itself, these innovations are more like adding new features to an existing vehicle. In the same way that smartphones have evolved beyond making phone calls, banks adjust by incorporating these new tools into their service offerings.

In summary, banks' fundamental function and necessity are unaffected by the constantly changing financial landscape. They remain an enduring component of our financial system because they are essential to making sure that capital moves through economies effectively and that transactions go without a hitch.