Is it true that the future of banking and financial sectors are on the verge of a revolutionary change with the emergence if bitcoins?
Frankly, it’s one of the most commonly searched queries all over the internet. That’s because multiple global investment banks are still sceptical the future of the traditional currencies with the increasing popularity of Bitcoins all over the world.
The financial institutions started taking these factors seriously after the news of a Deutsche Bank staff being released from their duty due to job cut went viral in the internet. The news image came with suited men carrying their belongings passing out of their office premises carryingbags branded ‘bitcoins’ in their hand.
One such image gained curiosity amongst the other financial institutions too- does that mean the judgement day is near and BTC and blockchain network is soon going to revolutionize the banking sectors?
Established financial institutions are facing a threat of existence
Even though a crypto like bitcoin has not been accepted by many countries as an accepted form of currency, yet some of the US global banks have already started providing crypto-vault facilities to the bitcoin users. One of the key reasons behind it is:
- Fear to lose the legacy in currency exchange trade race
- Rise of the challenger banks which small scale bootstrap retail banks in UK that competes with the established banking and financial institutions. Often they target the areas where the established banks usually fail to breach and hit those underserved areas to spike up their customer bases.
Competitive market for the established banks
According to the CEO of the Starling Bank – one of the challenger banksrecently said in an interview ‘that accepting the bitcoins in the banking sector is still far from bay but the usage of bitcoins and blockchain technology has already impacted the financial technology a lot and that has significant reasons to impact the future of the global investment banking sector. This created a threat for the established global banks who’re still sceptical about whether to adopt a virtual currency like bitcoins or not.
A lot of BTC traders who’re using the blockchain technology for storing their bitcoins are waiting for maximum banks to provide vault facility for retaining or holding the value of the bitcoins.
Cryptos are a global weapon that every financial institutes are keen to stock in their arsenal
Though all the UK based banks have not yet accepted crypto as a legitimate form of trade in currency exchange market, but a lot of financial institutions like Circle, Revolut , Square who’re soon expected in US is all set to provide crypto facilities to the bitcoin traders. That way, they’re making the competition crankier and the challenging for the other established banks playing in the market from a long time.
A number of bitcoin trading apps on the official website is ready to tie up with the banks for crypto trading. It will help them to raise the user accounts in no time, making a dual benefit for those app based crypto trading platforms as well as the established banks to compete the ruthless banking business.
It’s another reason some of the global banking corporations have already initiated the process of providing crypto currency trading facility in their arsenal to sustain their growth in the banking business.
Emergence of bitcoins affected the buying, selling and trading facilities of the customers
According to Annie Boden- the author ofThe Money Revolution and the CEO of Starling Bank UK identified a unique change in the preferences of the customers. She believes that the hype within buyers to use traditional currencies have decreased to certain extent with the emergence of cryptos. The users are no longer confined to their laptops or desktops to learn, accept and adopt new technology, rather they’ve accepted smart phones as they are much smarter, compact and user friendly to access online websites.
Similarly, now the bitcoin traders don’t have to switch on their laptops, or wake up their system from sleep mode to access bitcoin trading platforms. They can access it from anywhere and anytime to be a part of crypto trade. Just they need to click on their trading app account and they’re on to open a trade! She also added that though crypto currencies are way too far from being treated as an alternative to traditional currencies , but it’s better for the banking and financial institutions to incline towards it.
These are a few facts that the global banking and financial sectors are fearing about their sustenance crisis who’re yet to accept cryptos as a rising threat for traditional currencies in far future.
Cryptocurrency may be a long way off from being as popular as the Pound or the Dollar in regards to payments, but some of these companies are still offering the chance to use this alternative payment method, should you be so inclined.
“Customers have changed. Customers are buying music differently; they are shopping on Amazon; they are doing things very differently,” said Boden. “Technology has changed. Everyone is wandering around with their smartphones, these phones have better penetration than the laptop, and then all the time the regulations are changing as well, and that is a perfect storm to bring something like Starling to the market.”
Starling is one of several challenger banks that are succeeding at disrupting the banking hegemony with their customer focus, their everyday usability, and their own technologies. Their success is indeed a challenge to institutional financial systems, but because this is a fast-moving space, there are already challengers to the challenger banks