The financial services sector in 2020
Marcus Treacher, Senior VP of Customer Success at Ripple Labs Inc, has expressed his thoughts on how 2020 could change financial services.
According to him, payment providers and banks will continue to offer ever faster cross-border payment services to their customers, enabling them to send and receive low-value payments in real-time, shrinking the cost overhead of these.
As technology costs associated with running and development continue to climb, more banks will use banking-as-a-service tech platforms to revolutionise their cost-to-serve and cost-to-change.
Because cloud-hosted banking technology providers have developed new platforms with modern methods, they are ideally placed to easily and cheaply plug into emerging blockchain networks, AI engines and other categories of fintech. This means that the competitive advantage of innovative banks over slower-moving rivals will be intensified.
Regarding micro and wallet payments, their use has traditionally been confined to messaging apps like Telegram and Line, but with big tech companies introducing payment services of their own, we can expect a surge of developers flocking to digital assets as the solution to keep up with in-app, real-time payment processing demand.
With 80% of the volume in digital asset trading coming from Asia, the region has an appetite for innovation - and perhaps the greatest need for a better payments infrastructure. Blockchain has played a key role in this innovation, with its ability to make micro-transactions such as loans, payments, remittances - much more efficient and transparent.
In a region primed for advances in both consumer and enterprise remittances, there is enormous opportunity for the use of blockchain technology to address issues of liquidity, speed of implementation, and the cost of capital.
Source: FinTech Magazine