How Fintech Is Dragging Banks to Blockchain and AI
Fintech companies have now been provided with a great opportunity by the growing preference of millennials to accomplish tasks through digital applications. CEO of FIS, Anthony Jabbour, says the digitally native ways of millennials have given more insight into their needs and wants than any previous generation. FIS, the world’s largest global provider, dedicated to banking and payments technologies, conducted a research recently. It showed that millennials already make up a third of banked consumers in America. This highly educated and entrepreneurial generation represents a banked client....
Related News
African banks, behind the times with fintech, could actually become pioneers in developing new financial technologies like the blockchain and bitcoin. Because these banks largely left it up to telecom companies to assume the role of financial service providers in parts of Africa, the banks are now investing in digital currency startups, according to Quartz Africa. The question is how long will it take. Mbwana Alliy, a managing partner at the Savannah Fund, a technology venture company, said a headwind of fintech disruption is blowing from Europe and Silicon Valley into Africa. Blockchain....
Since 2015, an increasing number of multi-billion-dollar financial institutions such as Goldman Sachs have exhibited their interest in emerging innovative financial technologies and startups. Several major banks and financial organizations have established various investment funds for fintech and blockchain startups, to research the application of fintech and blockchain technologies in the financial market. Blockchain technology focused startups have been the main attraction of these banks. According to the Outlier Ventures research team, there are over 1,000 blockchain startups in....
According to a report released by Santander, using blockchain technology could allow banks to save as much as $20 billion. The research is called "The Fintech Paper 2.0" and was created in collaboration with fintech venture fund Anthemis and research firm Oliver Wyman. "It is only a matter of time before distributed ledgers become a trusted alternative for managing large volumes of data," the paper indicated. It revolves mostly on how emerging fintech technologies, including the decentralized ledger behind digital currencies, could affect banks. Blockchain Technology in Banks. Blockhain....
Banks didn’t plan for the blockchain. It just happened in front of them in 2015. But, they have been thinking a lot about its implications. 2015 was the year that banks started to wonder about their blockchain strategy. Banks that didn't have such a strategy were considered laggards. But despite its revolutionary prognosis, the blockchain doesn't signal the end of banking, because the banks aren’t going to use it to disrupt or obsolete themselves. Rather, they will guide it to live within the regulated constraints of their world. The good news is blockchain implementations help banks....
It will take time until banks come around to the idea of embracing Bitcoin or Fintech, though. Banks need to innovate at an accelerated pace, yet are unable to do so on their own. Allowing third-party developers to work together with the bank through API access would be a significant step in the right direction, as there is valuable input to be gathered from the Bitcoin and Fintech industries. Banks and other established financial players have not taken a liking to Fintech and digital currency just yet, as they see both industries as major competitors to their offerings. While it is....