Big Banks Profit challenged

[ekoice]

Big banks are worried about losing their profits to fintech companies such as bitcoin startups.Regarding Santander bank,the profit loss could be 10%, a leaked memo shows.The document shows that the bank charges six times more than its fintech rivals getting huge profits by giving customers poor exchange rates.They do this rather than charging customers high fees directly.It seems that Bitcoin has started to achieve the goal of liberating people from banking sectors,for what it was created by satoshi.

[Iranus]

Big banks are worried about losing their profits to fintech companies such as bitcoin startups.Regarding Santander bank,the profit loss could be 10%, a leaked memo shows.The document shows that the bank charges six times more than its fintech rivals getting huge profits by giving customers poor exchange rates.They do this rather than charging customers high fees directly.It seems that Bitcoin has started to achieve the goal of liberating people from banking sectors,for what it was created by satoshi.

I don't know where you're getting that "leaked memo" from, but Bitcoin startups won't be taking nearly as much of the profits from banks as you think they are.

It'll take a long time for people to start actually putting large amounts of money out of banks and into Bitcoin.  Even by any stretched estimates under 0.1% of people in the world are Bitcoin users, and most of those Bitcoin users won't have all or most of their funds in Bitcoin.  The banks aren't threatened yet.

[cb99]

People are already stuck in debts, so banks can't have much of a problem regarding their profit. We're probably around 7-8 million Crypto users right now.. do you really think it'll make such a big difference? Most of us don't even agree with banks and probably never will, so there won't be a noticeable difference for them..

Bitcoin won't hurt them right now. What will hurt them is an anonymous, decentralized cryptocurrency that they don't like. Bitcoin is one of them, and with mass adoption.. a big issue for banks will come. It wouldn't be surprising if we'll start seeing "WesternBankCoin" and similar altcoins soon ..

[xIIImaL]

Big banks are worried about losing their profits to fintech companies such as bitcoin startups.Regarding Santander bank,the profit loss could be 10%, a leaked memo shows.The document shows that the bank charges six times more than its fintech rivals getting huge profits by giving customers poor exchange rates.They do this rather than charging customers high fees directly.It seems that Bitcoin has started to achieve the goal of liberating people from banking sectors,for what it was created by satoshi.

I don't know where you're getting that "leaked memo" from, but Bitcoin startups won't be taking nearly as much of the profits from banks as you think they are.

It'll take a long time for people to start actually putting large amounts of money out of banks and into Bitcoin.  Even by any stretched estimates under 0.1% of people in the world are Bitcoin users, and most of those Bitcoin users won't have all or most of their funds in Bitcoin.  The banks aren't threatened yet.

Buddy I checked, This information seems true and its been released in Financial Times news site. Please refer it below.

https://www.ft.com/content/1a962c16-6952-11e6-ae5b-a7cc5dd5a28c

SOme months before even Citi bank New York announces that they plan to accept bitcoin for Citi users and plan about creating a new digital coin called Citicoin. I do not how much this gonna affect bitcoin.

[Duzter]

Same as Op's quote bitcoin have​ been looked as an threat by most of the banking service, just because of the loss it generated to them. Later on believing it's efficient way of development banks too have started adopting the technology.

[Victorycoin]

Big banks are worried about losing their profits to fintech companies such as bitcoin startups.Regarding Santander bank,the profit loss could be 10%, a leaked memo shows.The document shows that the bank charges six times more than its fintech rivals getting huge profits by giving customers poor exchange rates.They do this rather than charging customers high fees directly.It seems that Bitcoin has started to achieve the goal of liberating people from banking sectors,for what it was created by satoshi.

Since the day bitcoin started,it has been the worst nightmare for bankers.Now they have started to lose their revenues slowly due to bitcoins.In future,they would have to face more losses since bitcoin users would be more in future.

It wasn't for the fun of it that Bitcoin have been cited  as the future of money and situations like this, only gives credence to that. Bitcoin remains a threat to banks because it is far more convenient and cost effective for business, but its decentralized nature totally disagrees with the centralized nature of banks and that is why we are going to see the banks trying to come up with their own version of Bitcoin, so we cant say categorically that they are for Bitcoin.

[Kprawn]

Big banks have nothing to fear, because they have the full support from governments. The centralized nature of the Blockchain based coins,

like CitiCoin will never have the same appeal as a currency that cannot be manipulated, like Bitcoin. These centralized "coins" can easily decide

to increase the coin cap and nobody will have a choice in the matter... with Bitcoin we have a choice and we have a vote. { if you run a node }

[Yakamoto]

Big banks are worried about losing their profits to fintech companies such as bitcoin startups.Regarding Santander bank,the profit loss could be 10%, a leaked memo shows.The document shows that the bank charges six times more than its fintech rivals getting huge profits by giving customers poor exchange rates.They do this rather than charging customers high fees directly.It seems that Bitcoin has started to achieve the goal of liberating people from banking sectors,for what it was created by satoshi.

I don't think something like this would be surprising for anyone who's actually involved in the financial technology sector, or even follows the banking industry in general. Of course something like Bitcoin is going to end up cutting away at profits of banks, since the money they would have otherwise is now being put in something completely outside of the system.

This might prove to be an issue for legislation in the future, since we all know how the banks like to cozy up with the government.

[equator]

Lot of Banks have taken steps to take the knowledge of Blockchain technology and how to implement it in the regular banking system, so it think very soon we can see lot of development in the banking sector but what effect will it get to bitcoin is not known.

[HaXX0R1337]

Lot of Banks have taken steps to take the knowledge of Blockchain technology and how to implement it in the regular banking system, so it think very soon we can see lot of development in the banking sector but what effect will it get to bitcoin is not known.

The banking sector around the world and taking proactive steps to understand the block chain technology which would ease the transaction and gives  more transparency but it has nothing to do with bitcoin,we can understand why people are staying away from banks because not too long ago we saw a financial meltdown and people might take steps to safe guard their hard earned money.

[franky1]

1. when people buy bitcoin with fiat.  the fiat is not burned. it just moves from one account holder to another. in short banks do not lose anything.

2. banks forex trades are not done at 'consumer level' . banks make their profits in the back offices trading on wall street. most bank 'consumers' use commercial services like bureau de change at airports or even some supermarket retailer do foreign exchange for the consumer level stuff

3. banks do make 'profits'. but they spend it on bonuses, dividends, and hidden gratuities to their board/share holders before tax day to then show no 'profit' to then pay no/little tax. while the top employees and board members have upgraded their houses and cars

[mindrust]

As long as dumb people don't get rid of their credit cards, bank will keep making profits. It is a very simple mechanism what keeps banks alive.

First; they give you very low salaries which is enough barely for you to survive.
Second; they bomb you with advertisements of products which you don't absolutely need at all. (Like an Iphone for 500$, A sports car for 100k$, A parfume for 200$ etc, A big house for 500k$)
Third; As a brainwashed moron that you are, you immediately run to the banks and take loans.
Fourth; Gz. You successfully made yourself poor while making banks richer and richer.

As long as this cycle keeps going, banks will do fine.

What is bad for them is to make lesser profits than what they expected, and that's where bitcoin shines. An unexpected story for the bankers. A choice for the smart people.

Smart people don't trust banks. They hate banks. If they were able to, they would put every one of them on fire. They don't put their money on banks. Banks don't like that.  

[bitart]

As long as dumb people don't get rid of their credit cards, bank will keep making profits. It is a very simple mechanism what keeps banks alive.

First; they give you very low salaries which is enough barely for you to survive.
Second; they bomb you with advertisements of products which you don't absolutely need at all. (Like an Iphone for 500$, A sports car for 100k$, A parfume for 200$ etc, A big house for 500k$)
Third; As a brainwashed moron that you are, you immediately run to the banks and take loans.
Fourth; Gz. You successfully made yourself poor while making banks richer and richer.

As long as this cycle keeps going, banks will do fine.

What is bad for them is to make lesser profits than what they expected, and that's where bitcoin shines. An unexpected story for the bankers. A choice for the smart people.

Smart people don't trust banks. They hate banks. If they were able to, they would put every one of them on fire. They don't put their money on banks. Banks don't like that.  

It's OK, but what is the % of the smart people compared to the whole population?
What do you need to get smart?
Education - not everyone can afford it, it's not free
Financial independence - you need to have the funds to buy at least your average house, your average car and a salary to cover the average daily expenses. Not everyone has that funds or proper salary
Strength of will - Not to buy the iphone, the sport car, the dream house, etc... but if you have a whife and children, you will be less strength in things like that
All of these are costs money, and if you're short on money, you'll need the loans.
Banks are not realizing profit for the sole purpose to have a big profit. They have shareholders and the shareholders are waiting for the dividend, because they're funding the bank with their own funds and they want some return of the money year after year. And every year, they want a bit more then before.
The problem is not so urgent to the banks as it seems. If a fintech company finds a really new and innovative and cheap and easy and affordable and easily understandable thing that can challenge banks, who has the funds to finish the project? Banks or the financial groups behind the banks. They can easily buy the complete project (and they can decide it, if they want to start it or not)
Average people will trust banks first and fintech companies afterwards. So as long as the fintech startups won't team up with banks, they will hardly reach the neccessary amount of client to efficiently run their project, so they'll need additional funds to continue...
Banks gives loans (for houses, apartments, etc) for a long period of time (e.g. 20 years), so they have a plenty of time to develop their system. But, because they have the funds, they'll easily just buy the projects they want, so they will be the competitors of their own on the long run...

[ImHash]

As long as dumb people don't get rid of their credit cards, bank will keep making profits. It is a very simple mechanism what keeps banks alive.

First; they give you very low salaries which is enough barely for you to survive.
Second; they bomb you with advertisements of products which you don't absolutely need at all. (Like an Iphone for 500$, A sports car for 100k$, A parfume for 200$ etc, A big house for 500k$)
Third; As a brainwashed moron that you are, you immediately run to the banks and take loans.
Fourth; Gz. You successfully made yourself poor while making banks richer and richer.

As long as this cycle keeps going, banks will do fine.

What is bad for them is to make lesser profits than what they expected, and that's where bitcoin shines. An unexpected story for the bankers. A choice for the smart people.

Smart people don't trust banks. They hate banks. If they were able to, they would put every one of them on fire. They don't put their money on banks. Banks don't like that.  

Shut it you little sperm, banks are not living entities and we all are mo*ons but mo*on sperms when it comes to the might of the banks, they're the necessary evil, we need them without them nothing would sustain in financial markets.
Economy would not grow in any country/ ecosystem without banks and central banks, we could see the living evident of what kind of a disaster a decentralized network could become when it comes the time to grow and scale up.
Would you rather to get scammed by anonymous people promising you to give high interest rates on your investment and then run away and you remain helpless with no money back?

We all can see how a decentralized ecosystem can be stuck in stalemate, problem with crypto is when you have enough money then you have enough power and influence then you become what you hate most "banker" central bank but without the obligations which central banks have to their governments.

Bitcoin market is just a sperm swimming in a pool of sperms going for the egg, and guess where are central banks and governments? well mom and dad at your service

[QuestionAuthority]

This is old news. Banks have been studying blockchain tech for years now.

It is funny though. Bitcoin, the great libertarian big bank and fiat destroyer, is going to make big banks and fiat even stronger than they were before.

Source: http://nypost.com/2016/08/24/big-banks-push-new-digital-currency-to-rival-bitcoin/

UBS has developed a “Utility Settlement Coin” (USC), which is a digital cash equivalent of each of the major currencies backed by central banks, such as the dollar or euro, rather than a decentralized new digital currency such as bitcoin.

The USC would be convertible at parity with a bank deposit in the corresponding currency, making it fully backed by cash assets at a central bank. Spending a USC would be the same as spending the real currency it is paired with, UBS said.

Blockchain projects such as this have the potential to shake up the settlement system used by banks, under which transactions can take several days to finalize and which costs the financial industry $65 billion to $80 billion a year, according to an Oliver Wyman report last year.

It's a libtards wet porno dream and then your mom walks into the room.

[Wind_FURY]

Big banks are worried about losing their profits to fintech companies such as bitcoin startups.Regarding Santander bank,the profit loss could be 10%, a leaked memo shows.The document shows that the bank charges six times more than its fintech rivals getting huge profits by giving customers poor exchange rates.They do this rather than charging customers high fees directly.It seems that Bitcoin has started to achieve the goal of liberating people from banking sectors,for what it was created by satoshi.

I don't know where you're getting that "leaked memo" from, but Bitcoin startups won't be taking nearly as much of the profits from banks as you think they are.

Yes. Please show us the leaked memo or the link of the story relating to it.

It'll take a long time for people to start actually putting large amounts of money out of banks and into Bitcoin.  Even by any stretched estimates under 0.1% of people in the world are Bitcoin users, and most of those Bitcoin users won't have all or most of their funds in Bitcoin.  The banks aren't threatened yet.

Many people here in the community, I have noticed, overestimate the usage and adoption of Bitcoin at present. They think that it will rule the financial industry in their life time. Most of the people who say this could be lacking in formal education judging from their English.

[Sadlife]

The banks should start to worry once this Bitcoin scaling problem has been
resolve bitcoin shall continue to progress and should be able to break the $1400 barrier.
Then many countries shall start to adopt bitcoin as a payment method and in time this digital currency shall replace the banks fiat currency.

[Wind_FURY]

The banks should start to worry once this Bitcoin scaling problem has been
resolve bitcoin shall continue to progress and should be able to break the $1400 barrier.
Then many countries shall start to adopt bitcoin as a payment method and in time this digital currency shall replace the banks fiat currency.

Really? Has it really been resolved? The scaling debate is still escalating in my opinion and it will not end until Segwit is activated. A hard fork to Bitcoin Unlimited is out of the question. They should get an excellent development team if they intend to take the risk of a hard fork.

[ALWASA]

Same as Op's quote bitcoin have​ been looked as an threat by most of the banking service, just because of the loss it generated to them. Later on believing it's efficient way of development banks too have started adopting the technology.

for me it will never be a threat to them if they know how to use bitcoin to benefit these banking services.

[Doms]

Bitcoin hardly poses any threat to big banks presently. Even if bitcoin becomes a little more mainstream in a few years from now, it will still pale in comparison to what banks are making. It is just that banks are established institutions run by professionals who are always trying to meet quotas and would always try to outdo its competitors.