Fintech Companies Disrupting Finance, Creating Bank of Tomorrow
The creation of multi-crypto/fiat cards enable users to interchange between the given set of currencies in an almost seamless manner, possibly eliminating the need for retail banks
The banking industry is being rapidly disrupted by Blockchain technology. One popular recent development in the Blockchain community is the creation of multi-crypto/fiat debit cards. These cards allow users to interchange between the given set of currencies in a seamless manner.
A collective effort for mainstream adoption
According to Epstein, crypto debit cards will enable people to start using their digital currency for regular purchases. He explains that whether one particular platform succeeds or fails, the concept will prevail and push crypto into the mainstream. Epstein says:
“The multi-crypto/fiat cards and services like SaltLending, which allows you to use your crypto assets as security against fiat loans and the industry-wide Crypto Is Currency initiative is another.”
Epstein also notes that each of these innovations drive crypto further into mainstream acceptance whether as collateral or for practical exchange of value. Additionally, new groups like Crypto Explorers are emerging as communities for people dedicated to bringing crypto into the mainstream.
A fintech bank for tomorrow
He concludes by noting that what 2017 has shown us this far is that innovation is happening at increasingly fast speeds. The question for banks is if they can adapt and adjust as quickly as necessary to keep pace with the competitive innovations coming to market from the digital currency space.
Artur Luhaaar, Partner at Change Bank says:
“Traditional banks have outlived their time, consumer experience, not enough transparency, inability to respond to millennial's lifestyle with a great kind of products or services, that’s what is wrong with banks today.”
Luhaaar notes that fintech companies have consistently delivered better results in individual financial system services. He says that Change Bank wants to bring these companies together to create a global fintech bank of tomorrow.
The reinvention of traditional banks
Michael Vogel, CEO of Netcoins, describes the growth within the Bitcoin/altcoin space in 2017 as explosive. Vogel notes that this is caused by the daily increase in capital and number of users within the system. However, he predicts that the next phase will introduce us to additional innovations for a frictionless ecosystem.
“I foresee a next phase of additional innovation to make crypto-currency more frictionless for the growing user base, especially beginners. In other words, now that the Bitcoin infrastructure is in place, we're going to see continued growth and creation of platforms that make fintech solutions accessible to the mainstream.”
Vogel concludes by noting that this will ultimately cause banks to no longer serve the traditional "retail banking" side of facilitating transactions because Blockchain and Bitcoin-based solutions will be far more accessible.
He notes that in the long term we may see traditional banks reinvent their offerings, and instead of serving as primary vehicles for checking accounts and payments, banks will deepen their focus on areas such as lending, mortgages and business services.