Future of Banking & Finance
Banking As A Platform / Banking As A Service
Technology is changing everything.
Now banks are allowing the services through an API to access data generated by their bank accounts. More and more banks will transition to become more than a service provider. APIs across the banking industry will allow financial organizations to layer their offerings like building blocks — all this made possible by technology innovations
PSD2 ( Directive on Payment Services) and banking as a platform may just be about the ability to access account data right now, but there is a lot to come and you will see banks driving towards innovations and more flexible, safer and swifter payment for the consumers.
Banking As A Service ( BaaS ) allows exposure of APIs and new solutions can be designed to enhance customer experience and their wallet share.
Looks like future of banking is all about API and technology
E7 Surpasses G7
The assets of the world’s biggest developed-market banks will be eclipsed by those of their emerging competitors a decade earlier than previously expected.
E7 countries = China, India, Brazil, Russia, Mexico, Indonesia, Turkey
G7 countries = US, Japan, Germany, UK, France, Italy, Canada
FinTech ( Financial Technology ) / BlockChain
Forget days and weeks to clear international payments and paying to the something in-between. Banking of tomorrow is like sending an email, it’s done, that’s’ it.
Blockchain has just one open central ledger system that is owned by everybody, you can see your money and everything else about everyone else is masked; and there is no need for banking related over-engineered system
Banks are already turning to the Blockchain in a big way .By adopting this technology, the operating costs for banks for international payments can come down by 33%. To reap such benefits, various blockchain-related startups are receiving great financial commitment.
More on Blockchain
- Deloitte : Blockchain: Enigma,Paradox, and Opportunity : PDF download link
- Accenture: Blockchain in the Investment Bank PDF download link
- EY : Blockchain technology as a platform for digitization Implications for the insurance industry : PDF download link
- Gov.uk: Distributed Ledger Technology: beyond block chain — Gov.uk: PDF download link
- Barclays : Blockchain: understanding the potential — Barclays : PDF download link
- PwC : What’s next for blockchain in 2016? — PwC : PDF download link
- Sogeti: Blockchain: cryptoplatform for a frictionless economy: PDF download link
Now, what do you think of this statement/prediction given by Blockchain Co-Founder, Nicolas Cary
You Can Be Your Own Bank
Blockchain is seen as the missing technology link that can enhance security, transparency, and speed of banking and financial operations while reducing compliance, regulatory, administrative, and various other costs.
If the optimistic vision of a richer, more equitable world by 2050 is to be achieved, improving governance must play a key role.
Expect more and more consolidation in the banking and financial sector. There will be more banks from the emerging economies. Fast changing socio-economic development will create a shift in the banking and financial sector that only time can tell.
