From introducing cash-less wallets to B2C startups leading the marketing race to peer-to-peer lending to crowdfunding, the Fintech industry is revolutionising the world economy.
It’s necessary to say that Bitcoin as a part of the fintech industry revolution makes many digital currency companies compete with traditional banks by offering similar services and eliminating the need to deal with third parties.
So far, some of the most influential bankers on Wall Street are entering fintech in an attempt to transform traditional financial businesses. Despite some hesitation among various banks regarding the use of the technology underlying bitcoin, some of the globe’s leading financial organizations have recognized the potential of blockchain technology.
Former JPMorgan’s executive, Blythe Masters, has recently declined an offer to lead Barclays’ investment division to concentrate on her blockchain startup Digital Asset Holdings. She is now an active supporter of the blockchain technology and compares it with the development of Internet in the 1990s.
“The challenges for blockchain and bitcoin in the year ahead will be two-fold. Proponents will have to further address the lack of trust, a challenge they have faced since their creation. Then, the challenge of turning these technologies to tackle more real-world scenarios, such as sending money overseas,” reads Visa’s summary “Why 2015 was the year for payments”.
In fact, Anthony Jenkins, the former CEO of Barclays, considers the current banking system will be significantly transformed by the financial technology in the next ten years. According to Jenkins, almost half of the bank’s branches would be closed due to the rapid growth of new disruptive fintech startups.
“We will see massive pressure on incumbent banks, which will struggle to implement new technologies at the same pace as their new rivals [from the Fintech industry]. That will make it increasable challenging for them to deliver the returns and profitability that their shareholders demand,” he said.
Jenkins also noted the fintech will significantly enhance the customer experience now offered by the conventional banking system, adding that regulation is among the issues that must be overcome by fintech startups. However, some of the industry players are now concerned about regulatory problems that may slowdown the technological development in the next years.