In our current time of drastic and revolutionary changes, it is imperative to radically rethink business models and archetypes in general. This article will discuss the merits of blockchain, its impact on the financial system and the experiments some companies have conducted in this area.
Traditional financial services providers, banks in particular, are lagging behind the pace of technology development. According to one report from Accenture, most large banks use systems from the 1970s or even the 1960s, and newer computing technologies are simply laid on top of this foundation to support providing banking services online or via mobile devices. This means that the lion’s share of money goes to support the operational status of these systems, and not to introducing innovations. This, while the old technologies are still operating, and creaking with age.
If we consider the introduction of mobile and Internet banking technologies as an example, you can see that most companies first wait for a certain level of technology development before investing in them.
The fact that most of existing players use outdated technologies contributes to the emergence of companies that make financial services more efficient through innovation, which, at some point, could change the entire financial industry beyond recognition. For example, BRAVO, which was launched as an application for microtransactions in 2015, quickly realized the needs and opportunities of a changing market and is already switching to blockchain with the possibility of anonymous payment using cryptocurrencies.
Maria Luna, CEO at BRAVO explains:“The cryptocurrency market is worth over $290 billion dollars, but many users don’t know how to acquire coins and let alone, where to spend their coins. Even though there is a strong and real use case for service professionals, artists, small merchants and everybody else, at the moment, many sho...