Financial technology has upended the banking sector. The centralized platforms of yesterday go obsolete as sleeker, decentralized alternatives flood the market. Blockchain is a natural addition to the evolving banking landscape.
Banking is in a state of constant flux. Cash is less popular as daily operations go digital. Customer demands for convenience have sparked investment in remote banking services. The financial sector has proven willing to test blockchain technology, and some platforms are already bearing the fruit of this experimentation.
As bank technology officers anticipate customer demands, blockchain may prove useful. It aligns with common requests for better data security, lower fees, and less red tape. In a word: simplicity.
The stakes in the financial sector are higher than most. You don’t mess with people’s money, and you don’t violate the customer’s trust. This reality has led executives to explore all avenues for better security and customer protection, and blockchain is a compelling option. As more and more fintech platforms successfully incorporate blockchain, the technology moves closer to mainstream industry adoption.
Here’s what the experts have to say.
1. Kumar Gaurav, CEO and Founder of Cashaa
“We are at the stage beyond the hype now looking to find the right use cases where blockchain technology makes a big enough difference that it is worth to implement.
For the past five years, banks and blockchain companies have been in a time of experimenting, sometimes with the result being that a blockchain is not needed. However, despite some experts such as the Bank of America’s Tech Chief seeing it as hype, the ongoing strong commitments of banks and other institutions together with the numerous untapped use cases show that the golden age is yet to come.”
2. Rashid Oukhai, CEO and Founder of Peculium.io
“Since the ground-breaking of blockchain after the introduction of the digital currency Bitcoin, this technology has gained a lot of attention. Therefore, blockchain holds countless promises for fighting corruption by implementing a new level of transparency as well as carrying greater efficiency of transactions to the banking industry.
Definitely, banks are interested in this technology so national central banks and financial institutions have started studying the blockchain independently technology and or coordinating with consortiums and start-ups for exploring its benefits and how to make the best of it accordingly to their use cases.
According to the statistics compiled by Accenture in 2016 and based on surveying commercial banking professionals, it states that most of the banks are still in the early stages of adoption, about three-quarters either involved in a proof-of-concept, formulating their blockchain strategy, or just beginning to look into it.”
3. David Bleznak, CEO and Founder of Totle
“From a crypto perspective, blockchains are being used as a replacement to central databases in traditional banking. Our motto has always been ‘Bitcoin not blockchain.' This is meant to represent our view that a new asset class, frictionless value transfer and democratized finance are all made possible by cryptocurrencies themselves rather than distributed database technology.
So while banks are spending billions in an attempt to stay ahead of the curve, they are existentially and organizationally crumbling with the rise of decentralized finance, investment/liquidity solutions, and fintech services whom lack the overhead and real estate costs of traditional banks.”
4. Agnelo Marques, VP Technology and Head Blockchain CoE, Mphasis
“Going back a couple of years, 2017 witnessed the exuberance of price appreciation of cryptocurrency with Bitcoin hitting the $20,000 mark. But at the same time several industries evaluated blockchain as a promising technology for enterprises too. 2018 witnessed a steady growth in blockchain, technology teams tried it out by building several PoCs to test drive it for business applications, and we did see some successful pilots.
Additionally, several industry consortiums reached maturity level and have defined clear goals, guidelines and principles for a successful future. Governments have noticed the technology and evaluated its benefits in governance.”
5. Dr. Michael Yuan, CSO at CyberMiles
“More progressive than in most industries. Banking and other financial services already have seen significant blockchain adoption (or at least investment), partly due to an ever-growing need for enhanced security and availability of mobile and online banking in emerging markets.”
6. Eric Solis, CEO and Founder of MovoCash, Inc
“Traditional financial institutions are generally slow to adopt new technology, but blockchain is becoming a solution that banks can no longer ignore. We’ve been seeing the implementation of blockchain in various ways across the traditional financial sector, but it hasn't yet reached mainstream usage. There is also a lack of clarity around compliance and regulation leaving banks slow to adopt.”
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