Will the banks take control of the FinTech movement?

Blockchain and its derivatives (e.g. Bitcoin, Ethereum) have pretty much dominated the FinTech headlines these past few weeks.

[easy-tweet tweet=”In order to gain maximum leverage from #FinTech innovations, a more international approach is needed” hashtags=”Blockchain”]

For a summary, be sure to take a look at some of my over Blockchain blogs on Compare the Cloud.

That said, it’s worth noting that “FinTech” generally is grabbing the attention of Governmental Agencies:

Clearly, there must be something going on – and if there is – we should have a meeting to determine what it is we need to do.

Regardless – let’s have a meeting anyway to ensure there’s nothing we need to do…

With apologies to Civil Servants everywhere.

On a more serious note – it seems increasingly apparent to me that in order to gain the maximum leverage from FinTech innovations, that an increasingly more “international” approach will be needed.

Perhaps the Central Banks will lobby to ensure they retain their current “central hub connecting all the spokes” status – all the while refusing to recognise Bitcoins, Ether/similar as a reserve currency. Whilst some countries would certainly enjoy the prospect of seeing the “Almighty Dollar” topple from being the veritable King of the Castle – it’s unlikely to happen anytime soon.

So – within individual countries – will those respective Central Banks permit digital currencies to be used to settle payments due in other (non-digital) currencies or formally exchanged? And if so exchanged, which market(s) should be referenced to establish a reliable/current exchange rate?

If these so-called Distributed Ledger Technologies do not in theory at least require Trusted/Secure connections – then who exactly will become the effective guards – and ultimately, “Quis custodiet ipsos custodes?”

As I see things currently, there are simply too many vested interests in maintaining the status quo.

Sure – FinTech companies can certainly attack banks and steal away from them some low hanging fruits for sure – but can they realistically take on the world’s central banking systems and ultimately replace them?

Far more likely in my opinion is that we’ll see the banks “invest” in various FinTech start-ups – and little by little, take control.

After all – if you can’t beat them – find somebody bigger who can – or buy them!

[easy-tweet tweet=”It’s likely we’ll see the banks invest in various #FinTech start-ups – and eventually take control” hashtags=”Blockchain”]

The banks will remain – but potentially huge numbers of employees from within – plus scores more from the eventually likely to be defunct intermediaries (more on this next week – but for now think “Clearing Brokers”) will no longer be required. Costs will be significantly reduced – profits are therefore likely to increase – so how can banks not invest in FinTech?

+ posts

Meet Stella


Related articles

The Rise of Smart Vending Machines

Smart vending machines are delivering more accessible solutions to the modern workforce by delivering replacement IT items quickly and efficiently.

Designated Driver: Why Complex Technology Environments Require a Steady Hand

While the function of monitoring software is to provide configuration and compliance assurance, in achieving these tasks, typically the solution will actually deliver much more than this.

Building the Business Case for Satellite IoT 

The door is open for SIs across the world to build on the knowledge gained over the last few years,

Using Cloud To Avoid Bloated Business Models

With the right approach, cloud computing can bring huge benefits, helping businesses become resilient, so they can adapt to any unexpected market disruptors now and in the future. Now, the promise of cloud is as strong as it has ever been.

Elevating healthcare services with cloud computing

The cloud is enabling healthcare to evolve and is helping to address the challenges of budgets, manpower and other resource shortages while treatment and expectations grow exponentially.

Subscribe to our Newsletter