Blockchain is not a magic pill from diseases of the banking system
According to the article Rene Lacerte — founder and CEO Bill.com leading companies for business payments.
Looking today at the market capitalization of digital currencies such as Ether, Litecoin and Ripple, experts suggest that 2018 will increase the value of cryptocurrencies at least twice. We all see how the world is changing and what incredible things are happening before our eyes, but still fraudulent projects, hacker attacks and the like reduce confidence in the industry. Therefore, the main issue that should be resolved in 2018 is as follows: how reliable are such Blockchain technologies for the future of Finance?
Rene Lazart not think Blockchain technology is the future, at least for banks. Immersed in outdated systems that need to be upgraded to future technology, and faced with compliance issues, banks need to think twice before investing in “unproven” technologies. This means that before banks allow bots, blockchain, or any other hot innovations to manage resources, they need to make sure that they invest in fundamental technologies that will be valuable to customers and provide the basis for technological breakthroughs.
What are the main principles of service that most interest business customers, and what banks can do in the long term? Should banks invest in correcting the erroneous architecture and improving the mobile service strategy in an increasingly “digital” society that prefers non-cash payments? Or should they put their efforts in a different direction?
As CEO of a technology company, Rene Lazart critical of any technology that claims to be the solution to all problems in any industry. Banking is a highly regulated industry with many complex needs. Fintech has emerged to help bridge the gap between consumer expectations and the challenges faced by financial institutions due to outdated infrastructure.
International banks are already investing in blockchain, which will eventually reduce their back-office costs by about $54 billion. However, few banks are set to use Blockchain technology in the short term. Investing in Blockchain also presents a number of problems for banks, including the lack of market maturity and slow the adoption process.
Artificial intelligence (AI), like Blockchain, promises a profitable future, but they are still at an early stage of development. Although banks have used different forms of AI for decades (for example, computer automation for fraud detection), so far they have not attracted AI to address more complex issues such as robotic responses. Microsoft’s Tay fiasco proved that it is too early to do so. Requires considerable labor and time for proper development of AI, learning systems and enhancement of trust and acceptance among customers. In the end, these bots do not just make purchases for customers, banks trust them with the keys to Finance.
Banks are at risk of losing customers due to poor technology. Instead of jumping on the train Blockchain and AI, financial institutions have the opportunity to take advantage of the moment and improve the basic principles of service, which is now received by their business customers.
Like any consumer, business customers want easy access to their information digitally, anywhere, on any screen and without any problems. They want to manage their assets with their fingertips, and technology helps improve customer service.
The main element of the service, which is now looking for business customers, is a digital approach to banking. Business owners want quality customer support and a variety of excellent products and services to choose from. But anyway, in the first place will always be safety. Clients choose technologically advanced banks with a great team, able to keep information secure.
Ben little, co-founder of innovative consulting, said recently in the Guardian:
Entrepreneurs want a Bank that adheres to their strategy and works at the same speed as they do. This also applies to the personal needs and business
Entrepreneurs, ordinary users and business owners want the same thing from banks: instant digital access, security, reliability and mobility. As has already been said — before banks invest in bots, blockchain And other hot innovations, they need to be 100% sure that they invest in fundamental innovations that can fully meet all customers ‘ needs.