“almost 77% of financial services industry plan on adopting blockchain in some way by 2020. Banks, especially, have indicated an interest in the technology, with nearly one third of surveyed institutions noting that they are at least in the initial stages of developing strategies to integrate blockchain into their operations”.
That is an excerpt taken from a report released based on a PWC survey of the financial services sector and fintech conducted between the last quarter of 2017 and the early part of 2018. The financial tech (fintech) industry came on the scene more out of a necessity than for any other reason.
What must be noted is that the fintech industry has some up with lots of innovative solutions that cannot be overlooked. Examples of such being the introduction and integration of credit cards, ATMs, and most online based monetary transactions. Fintech started as a small industry in its early days and received a massive push with the wave of the internet’s rise, and went on to becoming a key contributor to the financial state of many institutions and economies.
Blockchain Is Coming To An Already Thriving Business Ecosystem
The Fintech industry is already faring very well in the present business ecosystem. The industry now spans from basic retail banking services all the way up to wealth and investment management.
Now people’s debts keep rising and rising and they can’t do anything about it, accessing banking services is still difficult, and most of the conventional financial institutions are not able to reach the needs all the masses, thus most of these fintechs whose works are internet-based mostly target the people who find these conventional systems just too archaic.
As for the success of this approach by most Fintechs, you can look at PayPal, EZBob, Stripe, Addepar etc . So then what conclusion can be drawn by the introduction of blockchain technology into this “thriving ecosystem”. Well, one, the industry will definitely find means of integrating it into its projects and services to explore what it is fully capable of. And two,
It is Welcome, But Neither A Requirement Nor A Necessity
From the theoretical standpoint, blockchain has a very huge potential to make fintech better. However, analytically it may not be the case all the time.
Blockchain’s decentralised nature makes it extremely difficult to hack into its system as compared to the centralised system of banks and most institutions. This ledger is actually transparent in its transactions, and thus forgery is almost impossible. Its decentralised state also makes it virtually impossible or say immune to cyber attacks considering the number of verifications.
“Some companies have fully embraced this new technology, but others are also gradually trying to integrate it into their present working systems. The prevailing question is whether fintechs really need to adopt blockchain technology as quickly as possible”.
This underlying technology at the bottom of crytpocurrencies has proven to be a great sales booster for any business, however, as to whether it should be adopted and integrated into the fintech industry is another thing which will prove to be both a major step for the industry and for blockchain technology itself.
Will the merge of blockchain and Fintech be a great idea or a global catastrophe? We at Coinstaker appreciate your views and opinions very much concerning what you read and would like to know more of what you think. Join the conversation and share your views with the Coinstaker community via Telegram.
Featured Images via Shutterstock and Cryptovest
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