This is how it started. Banks within the European Union were ordered by Competition and Markets Authority (CMA) to grant customers access to their personal data. Then an industry was born, with the help of savvy start-ups who know banking.
Blockchain start-ups have been delivering ideas and in some cases, new technologies to banks, that allow access to personal data combined with blockchain. The result is a new industry that could save banks over 10 billion dollars. These are small start-ups teaching the giants of finance, how things should work.
There is what is called Open Banking – a system that allows the customer, not the bank, to own trading history, customer transaction history, and even information about the bank. This marrying of available financial data and new possibilities for blockchain-driven efficiencies have made the climate for banks difficult but at the same time have introduced new ideas that are, in the future, potentially cost saving. Banks will likely employ these technologies, for survival as they will be crushed by external competition.
At Classiarius, we feel that to survive, banks will start buying blockchain technologies to stay ahead of the curve. This could be more efficient as building in house teams is costly and takes years. Buying a blockchain start-up takes far less time.
We see blockchain technology making international money transfers, and settlement faster and most cost effective. And as mentioned above, client information, trade and transaction history could be far more efficient in the blockchain world of banking by 2020 and beyond.
The most interesting point about start-ups is that they have not be found yet?