Blockchain will revolutionize the banking industry
Banks are looking at how fintechs and the ability to use technology can create new business models opportunities within the financial sector. Blockchain in Banking plays a key role in the process whilst solving problems that traditional methods don’t. Nearly every global bank is or has already explored what can be achieved with blockchain technology; Efficiency by partnering with fintechs, global consortia and building in-house solutions.
Regulations have limited what can be done in the industry and the development of new methods within the industry have not progressed in such manner that would allow it to fulfil extraordinary changes.
The fintech firm R3 has announced that 22 of the world’s biggest banks have created an international payments system- Corda, which is a blockchain-inspired system.
The attention blockachain will gather is going to clearly show the benefits it has to offer, by presenting successful solutions for specific problems, with the intention of creating a new type of network and methodology that we do not currently use.
“Banks have a burning need to innovate faster but have not been very successful with digital innovation through in-house efforts”. – Capgemini
Whilst banks are seeking digital innovation and fintechs fighting for regulations and consumer´s trust, a collaboration can allow them to achieve their objectives.
The technological revolution has made online banking a necessity, however the evolution must continue. The future of the financial sector can expect further changes as new players have shown their potential. Focusing on how to cope with digital transformation and not simply relying on the old regulatory framework can save existing banks. Although the trust customers have shown towards their banks has been negative at times, trust is still an advantage they have over new fintechs.
Maintain the balanced trust they possess when comparing to the new players that have not yet acquired this important and key factor.