The banks should be worried, as a recent survey reveals that at least one-third of people would switch their bank account to Amazon, Google, or Facebook if those companies offered banking services.
There are areas where banks should completely embrace Blockchain Technologies to compete with financial challengers. And the most vulnerable area in traditional banking system is Foreign Payment Transactions.
The existing payment infrastructure used by traditional banks faces multiple challenges, relating to security, speed, and cost.
Stories about cyber attacks on major banks that exploited vulnerabilities in the Swift system show the flaws of existing practice.
So many people have already turned to non-bank entities like PAYPAL, TRANSFERWISE, XOOM…which offers better real time delivery alternatives to the existing, outdated, slow, expensive, and unreliable of traditional banking system.
Blockchain-derived technologies like RIPPLEs Interledger Protocol allows interbank payments to move away from batch-and -file to Real Time APIs.
Its the only solution for the banks looking to be competitive with non-bank challengers.
INTERNET OF THINGS
It is estimated that by 2020 there will be 50 billion connected devices, including cars, fridges, thermostats…this is “INTERNET OF THINGS” and happening now with accelerating speed.
Your connected fridge will soon know when you are out of milk and automatically order you some more.
For banks the most interesting aspect of this connected experience is the monetary transactions that will happen with things talk to each other.
INTERNET OF VALUE
This is just the first wave in what will be a tsunami of micro-payments powering the INTERNET OF VALUE.
Musicians could self-distribute songs and charge fans a nickel for every stream or your car might pay parking meter. The power of Blockchain will make all this possible.
Banks should be building services now, that facilitate the anticipated huge volume of micro payments by starting with Blockchain Technology.
Every day now the new customers join Ripples Global Payment Network. (R G P N).
Some of the world largest banks, innovative smaller banks, and payment service providers (P S Ps) are turning to RIPPLE for cross-border payments.
People know Ripple is the only Blockchain solution for payments that is proven in real world and also proven to significantly reduce the time and cost associated with global financial transactions.
Most forward thinking financial institutions around the world are using Ripples Enterprise Blockchain solution to move real money around the world, realizing the enhanced efficiency of Blockchain for real time cross-border payments offering superior banking experience to customers.