The future of banking industry in blockchain

[MonsterV]

Blockchain is indeed being predicted will replace old bank system. But Blockchain has not yet passed trials in all respects, implementing a new system in a bank is not an easy thing, everything must be calculated with both profit and loss. Some banks also need to first adjust to blockchain system while waiting for results of research to come out, so it takes quite a long time for the consideration to become complex.

If this was the case, banks would be already actively working on it, they would show some prototypes, make network tests, create joint groups and so on - but there's nothing like that now. All we had in these years is just a few banks saying that they are interested in blockchain and nothing more. Maybe it all was just a stunt to boost their image, as blockchain was very hyped in 2017. Anyway, blockchain has to prove itself on a smaller scale first, but it failed to do so for many years already.

Maybe there should be encouragement from one of banks to start using blockchain, at least there is one concrete evidence that blockchain system is able to run well within bank. Although it cannot be implemented immediately, at least other banks have a clear picture of how blockchain system works within bank making it easier for them to conduct research in implement this blockchain system.

[Questat]

Usually big banks are more eager in experimenting in new technology, so they will be the first to implement it, don't worry about the small banks as they will eventually follow the big banks, what matters now is banks are adopting with blockchain and that's tantamount to adopting in crypto as well.

When crypto will be widely accepted by bank, that is gonna be a great news for the market, and I believe there's a big possibility that it will happen in the future as we already have a lot of regulated exchanges which they can have legal partnership with banks who supports crypto as well.

It will take time but it will happen for sure. 

[audaciousbeing]

This is currently happening whether there is an objective evidence to support it or not. Most big banks have strategic thinkers who are looking into the future for the banks and they propose to the bank managers on the course of action to follow. And because they have the money to hire the best developers and consultants, they would have gone to the future and back before anything is leaked to the press.

Blockchain as a technology if implemented will go a long way in resolving several issues. Today if one is debited in error without receiving value, it takes several days before it can be investigated and refund made and this has been causing serious issues with banks and their customers but I believe with this implementation, the blockchain is there to confirm if the value has been received and when that is confirmed, refund is made to the delight of everyone.

[jhonjhon]

Smaller banks have less revenues compared to big banks thus, before entering into something or in this case using blockchain technology they have to make sure they will be investing into a technology that is proven and tested and will provide them the benefits they wanted or expected. Migrating to blockchain may be a very hard thing to do that is why they have to make sure it is worth investing to.
Blockchain has many good uses and it may be a good technology in ensuring the security of our assets and I think with todays increase popularity of blockchain, it is only a matter of time that banks will probably use it.

[tungaqhd]

Blockchain is an effective tool in improving the banking services due to its multiple functions. Its not only applies on sending money but also in securing their operations verified and free from tampering.

But a lot of technology has the same features as blockchain, it even has more special features than blockchain, and the best thing is that the features in this system can be edited and managed easily while the blockchain is almost immutable once confirmed, and if banks want to improve their services, they will choose other systems, instead of blockchain, and from here, the future of the bank probably will not exist the existence of blockchain. Before talking about banking, a lot of fields have used blockchain and until now, it has become a thing of the past when the relevance was too low.

[shoreno]

smaller banks should be the one that use or implement blokchain tech on thier service because they dont have yet enough reputation and its okay because if their costumers wont like it , they wont loose big but bigger banks are also have a bigger reputation so they might be afraid to risk it with newer technology that is not yet mainstream  . there are people that are afraid to use a blockchain or  service related to blockchain like for example cryptos , these are the factors that banks only considered before they decide to set up blockhain or not  .

[tadpole_bitfrog]

Hey.
Yesterday I read an article about banks that began to use blockchain and there was pretty impressive list.
They're also described successful cases of using blockchain in banks (if you're interested - here's the article), so I may assume that using blockchain in bank's system is only a matter of time (and money, of course).

Now, the question: why it takes THAT long the smaller banks to go the same way and start using the blockchain?

I think they're starting to change direction and they need time. You know, blockchain technology is now only discovered and recognized by some big businesses in the financial industry.
Besides, the application of blockchain technology will also need to notify users. because most people in Asia do not use this blockchain technology and they do not have enough knowledge to use it.
therefore, integration time is needed for this complex technology.

[Kotone]

Hey.
Yesterday I read an article about banks that began to use blockchain and there was pretty impressive list.
They're also described successful cases of using blockchain in banks (if you're interested - here's the article), so I may assume that using blockchain in bank's system is only a matter of time (and money, of course).

Now, the question: why it takes THAT long the smaller banks to go the same way and start using the blockchain?

First of all, trust, blockchain is decentralized even some centralized approach is done by some project. People tend to get scared especially those who have routinely see and experience fiancial method of doing bank.

For example, youre a bank client, and suddenly the bank introduced blockchain as the new processing method of transaction, its okay if you have knowledge but what if none? See, lots of factor to consider why small banks cant easily agree to disagree with crypto.

[redsun114]

They do not like changes that actually not make them money, if there is a competition then they have to do it but they hate it, however if there is a new thing that would make them a lot of money then they will literally do it overnight.

These are companies that literally built on making money with money, so if they build blockchain into the system then they will make a lot of money considering they can literally save on fees, with blockchain these corporations would make BILLIONS of dollars of money, so they would actually probably make this really quickly because they really want money.

Right now, they are probably doing tests and calculations to see how much they can profit from it, if they feel like they will profit from it very well then they will speed things up.

[gantez]

The smaller banks should even be more active and innovating technologies that will make customers leave bigger banks and come for them. In my view, they are slow to adopting blockchain.

[davis196]

I honestly don't really care much about banks adopting blockchain or new database technology as long as they aren't socializing the benefits so that their clients can finally enjoy a better service at lower cost. Banks have more incentive to not share the efficiency benefits with their clients so that they keep paying the full price for the services they are already familiar with.

More broadly speaking, the blockchain technology isn't a wonder pill that solves every problem in the world. It really seems that people have jumped on the buzz without even realizing what it actually is. The blockchain is more a buzzword that companies use to attract capital than it is something that enjoys much real world use.

The banks will share those "efficiency benefits" with their clients only if the market competition forces them to do so.If there's a banking cartel,any innovation in the finance world won't lead to a better service or lower prices.
Anyway,I agree that blockchain became a buzzword,which is really sad.We need to educate the people about the possibilities and weaknesses of the blockchain technology.

[ufaiz50]

Hey.
Yesterday I read an article about banks that began to use blockchain and there was pretty impressive list.
They're also described successful cases of using blockchain in banks (if you're interested - here's the article), so I may assume that using blockchain in bank's system is only a matter of time (and money, of course).

Now, the question: why it takes THAT long the smaller banks to go the same way and start using the blockchain?

Blockchain is known for the ease of transactions and transaction recorded, this is suitable for the use of technology systems for the bank industry. But in implementation technology not only money or time, but human resources must also be seen, to build a blockchain industry, we must have someone who is an expert in blockchain technology, the most serious problem in banks is security, even well-known exchangers can be hacked.

[imstillthebest]

Blockchain is known for the ease of transactions and transaction recorded, this is suitable for the use of technology systems for the bank industry.

common known use for blockchain are for cryptos and cryptos are currencies like money  . banks also handle money works so yes blockchain system can also be a good tandem if use with banks but this isnt also a dream or a plan because some banks already started using  it  .

But in implementation technology not only money or time, but human resources must also be seen, to build a blockchain industry, we must have someone who is an expert in blockchain technology

money is not a problem for the banks because banks can surely pay the cost for implementing blockchain use and other i.t  maintenance  .they can just hire a qualified programmer that has a specialty in the blockchain scene    .

the most serious problem in banks is security, even well-known exchangers can be hacked.

thats true . banks are being attacked by robbers  as well as exchangers online has also being hacked  .  still  ,blockchain can still secure some important data's or infos which cant be stole by someone else .

[shield132]

Well, blockchain can add an extra layer of protection to sensitive information because it won't be so easy to modify it but on another hand, am I the only one who can't understand other benefits?
For example:
1. Faster transactions -- How? How can integration of blockchain technologies in banks accelerate transaction speed? When I move money in bank's accounts, it's done immediately. When I move in another bank, then it sometimes takes days too, why? Because transactions aren't done immediately and needs confirmation. Can't understand how blockchain technologies can speed up this process if banks still require manual confirmation of some transactions, blockchain technologies can't and won't make them to move every transaction on automatically immediate confirmation, so this is false claim.
2. Lower transaction fees -- Again How? Online transaction is simply numbers, they charge fees because of personal interest, is blockchain technology magic to change bankers mind?
3. Absence of geographical barriers -- This is another curiosity, seems people can't understand what is blockchain technologies and they think it prevents and fixes every barrier that currently exists.

[Janation]

I think not all of them are that swayed to use Blockchain.

Some say that they still don't know what that is but I doubt that.

Maybe they are still at the discussion to either use it or just stay with the way they are right now. Time will come and they would be left behind, that would be the time that they will use the technology.

[beerlover]

It could definitely have positives but it could also have negatives as well. Lets say you do not have any bank accounts from now on, you just have that banks blockchains address, like bitcoin wallet address but for that banks blockchain itself. Now, if you have that then anyone who gets a hold of that banks blockchain to check (like a blockchain explorer) then they can literally check everyone's account and how much they have. Would they be able to hack it and get your money? We don't know, maybe it could be possible or maybe it won't be.

However, even the idea of someone checking everyone's accounts whenever they want sounds horrible, that is why I highly suggest banks to figure out a different method, not just go with blockchain directly but find a combined method.

[abhiseshakana]

Why are banks interested in the blockchain? Initially, banks were interested in Blockchain because it has the potential to cut costs and increase efficiency in operations.

The use of blockchains in banking institutions as a tool to improve the working mechanism in the internal bank. The goal is to improve services and innovate the development of other banking products. Safer, faster, more efficient and instant settlements.

If they do not immediately adjust and adapt, the blockchain can become a threat to the banking sector. Because with the blockchain the role of banking as an intermediary for money exchange is not necessary. So, in my opinion, the bank will inevitably adopt this technology in order to survive.

[hatshepsut93]

Hey.
Yesterday I read an article about banks that began to use blockchain and there was pretty impressive list.
They're also described successful cases of using blockchain in banks (if you're interested - here's the article), so I may assume that using blockchain in bank's system is only a matter of time (and money, of course).

Now, the question: why it takes THAT long the smaller banks to go the same way and start using the blockchain?

I don't see any banks "successfully using blockchain" in that article, I only see "banks experimenting with blockchain", which is a totally different thing. Many of them are just press-releases from 2017, when simply saying "blockchain" could boost your company stock by a few percents. "Working on" is very different from "using in production", there's no guarantee that their experiments will be successful and create production-ready systems. In fact the success rate of blockchain products is extremely low, so it's actually unlikely that blockchain will be widespread in banking or any other industry, unless someone will make some breakthrough that will fix its problems.

[adamlillian]

I don't really know what your question is, but for small banks, they need to be more advanced in order to gain market share to make their business better.
With a technology era, banks are not looking to blockchain, which is considered a bad bank. they are only behind banks that apply blockchain.

[jeraldskie11]

Ripple Blockchain is providing all the necessary tools for banking industry and  more future we will see more blockchain platforms will ease banking operations to blockchain based applications

And the question is: why is XRP losing so much value? Is the banking uninterested?

Blockchain is overrated. It's great to hold information but not so great for banking.

I agree with you to the point that XRP losing so much value but it doesn't mean it's a bad for banking because it is normal for the blockchain to get low value because price can only up if it's high on demand. So if the Xrp really a good project for banking they will make things that the price will stable so that they need to study it very well.