The five current technological megatrends in the banking sector include blockchain technology and the resulting cryptoeconomy. After initial hesitation about blockchain, most leading financial institutions now recognize the opportunities it offers.
Last winter, the Institute for Financial Services IFZ presented the Banking Trend-Map 2019. In a professional article based on this, a focus on the technical megatrends shows the challenges facing the financial industry and the options for action that appear to be appropriate. Blockchain is one of the five current technological megatrends. This is in line with the observations of our industry experts.
Significant challenges for banks
The blockchain has become a household name in the financial industry as a term associated with Bitcoin. Blockchain is a distributed ledger that lays the foundation for new forms of investment in the crypto economy such as Bitcoin. If a bank wants to offer these to interested customers, we believe it faces considerable challenges. Our CEO Mark Dambacher points out four challenges in an interview:
- The employees on the front line must have know-how in the crypto area in order to continue to provide the best possible service to clients.
- The bank must have an adequate and secure technical infrastructure and adequately trained staff.
- Costly extensions must be made to the core banking systems to enable the processing of crypto transactions.
- Regulatory requirements, especially with regard to capital adequacy and money laundering, must be taken into account.
Change in the bank’s own business model
According to Dr. Urs Blattmann, lecturer and project manager at IFZ and author of the IFZ article, the following three steps are essential for a successful path into the future:
- Recognizing that future success will only be possible through sourcing, cooperation and platforms and that the bank should be guided by a customer-centric view.
- Change the bank’s own business model by focusing on the core business and building up sourcing and partner management competence.
- Implementation of appropriate solutions together with partners.
Our banking experts at InCore Bank describe blockchain as a groundbreaking innovation with the ability to completely change the banking landscape in the coming years. In our view, the bank of the future is a technology company that will serve as a digital platform for the production and marketing of customized financial services.
Our banking experts at InCore Bank describe blockchain as a groundbreaking innovation that has the ability to completely change the banking landscape in the coming years. In our view, the bank of the future is a technology company that will serve as a digital platform for the production and marketing of customer-specific financial services.
*Originally published in German at CVJ.ch