The 2nd generation of banking is going digital

[ActAshton]

Someone told me a few weeks ago, "we would literally have NOTHING without banks. Nobody would be able to transact throughout the world to provide goods, services, resources, anything without having to travel thousands of kilometers. Imagine if we just introduced banks... Where would we be in life?"

According to this Credit-Suisse piece from 2015, without banks today, we wouldn't have access to things like fiat, loans, and maybe even vehicles and proper housing.

As we step closer and closer towards a digital lifestyle consisting of smartphones, laptops, contactless payments, flying cars, AI, and so much more disruptive technology, we continue to rely more and more on our non-physical assets and services. Then again, there is nothing wrong with this as we are evolving more and more with this beautiful technology every day. With banks (and especially in the crypto space), there is always a need to fulfill economic requirements for individuals and businesses alike. As we move forward, the digital approach continues to look more and more attractive foreshadowing this will become a norm in the future. The interesting topic at play is banking 100% digitally and how it will pan out.

"Digital banking is evolving at a rapid rate and the emergence of new tech startups no longer represents online services that simply complement your traditional bank account. With improvements in financial technology, some of the more impressive new online banks are now in a position to replace traditional banks entirely.

Many of the world’s largest financial institutions initially ignored the threat posed by fintech startups in the early days of digital banking. For years, none of these new players could match the services on offer by wealthy, established institutions that enjoyed a global network of partnerships and an army of staff. Nowadays, however, technology has replaced the need for a large body of staff and removed the need for strategic partnerships formed in multiple countries. The marriage of finance and technology means the old-school can no longer hide behind money and status: young professionals now desire a bank that can meet the demands of the fast-paced, modern world of international business." - Sourced from BTCNN.com


I have taken the liberty and posted yet another poll to gather some feedback and opinions on what you may think the next wave of banking may consist of. I believe having one, all-around bank that caters multiple currencies and is domiciled in a beneficial jurisdiction may be good bigger businesses in crypto to keep their eyes on. This will solve a lot of their current discrepancies when finding a reliable place to bank.

Post a comment and leave a vote with your opinion!

[Wexnident]

Indeed. Having a central bank for all purposes needed can lessen the hassle on every user since the process would be quite simplified by then. This doesn't mean that banks were not good for anything. Banks were the foundation of our economic market in the past after all. It is just, its time for us to improve and innovate not only our tech but also our markets, payments, financial transactions and such. Well, before such a virtual central bank could exist, a lot of things are still needed and a lot of countries still need persuasion so that everyone can have access to such a bank.

[Ucy]

Or you can simply choose Bitcoin and be your own bank.
We cannot afford to recreate the physical bank on online world. That would be "out of the frying pan into the fire" kind of situation.
The whole thing could be optional. Those that prefer to be their own bank should be allowed to be their own. Those that prefer to have their fund in banks should be allowed to have their fund in banks.

[palle11]

I see that the digital nature of the new banking system is actually giving cryptocurrency the help in growing. Some crypto systems are already understood by people because they are already getting use to the digital banking. For example, with many banks operating the card system, atms, KYC verifications etc they are thus not new again. The bitcoin ATM is not new nor strange because people are already use to the fiat ATM .

[ene1980]

There is a small clarification i would like to make, future of banking can be traditional by taking every function at the comfort of your home and you can even call it digital banking and you will be able to do everything virtually and that does not mean all the physical offices should be shut down, if you mean going digital means by going to the crypto based market then i do not want any crypto based bank as bitcoin is meant to have full control over your asset and not to trust a third person.

[yoseph]

Indeed. Having a central bank for all purposes needed can lessen the hassle on every user since the process would be quite simplified by then. This doesn't mean that banks were not good for anything. Banks were the foundation of our economic market in the past after all. It is just, its time for us to improve and innovate not only our tech but also our markets, payments, financial transactions and such. Well, before such a virtual central bank could exist, a lot of things are still needed and a lot of countries still need persuasion so that everyone can have access to such a bank.

In my opinion only the central bank is necessary for the survival of every economy and due to the fact that the central bank cant service the entire population that's why there are so numerous banks out there for the people but people are seemingly getting tired of all these banks especially in the third world countries where the bank closes instantly taking their customers deposits with them.

[Broly46]

No body will use the next generation banking, they will slowly cease to exist all together, and Libra PayPal would take their place for all the financial need for the true next gen.

[CryptoBry]

I have taken the liberty and posted yet another poll to gather some feedback and opinions on what you may think the next wave of banking may consist of. I believe having one, all-around bank that caters multiple currencies and is domiciled in a beneficial jurisdiction may be good bigger businesses in crypto to keep their eyes on. This will solve a lot of their current discrepancies when finding a reliable place to bank.

The digital movement has been started years ago and the banking industry has been in the forefront of this innovation. We are going to be digital and banking will be done right in our own smartphones. This is already happening right now and I think in my country I just recently saw an ad for an all-digital banking operation where users are not anymore encouraged to visit a physical branch office.

On digitalization, one of the big advantage is paperless transactions so we are actually saving a lot of trees by joining a digitalized bank; a simple act like this can go a long, long way in saving our environment. Now, as extension to digitalization, there are now big banks looking also on how to participate with the blockchain and cryptocurrency so we can expect (and there are already those doing this) banks to be releasing their own coins.

Bitcoin is supposed to be a bank killer but banks are innovating and adopting to change. I don't see a future where banks are eliminated but I am sure cryptocurrency and banks can be co-existing peacefully and profitably and can even be joining forces in serving the people.

[ecnalubma]

We are already in the era of digital banking before the existence of cryptocurrencies we are already moving funds online thru online banking, money remittances and other third party financial services. The birth of cryptocurrency gives a new episode for digital banking through crypto we can now send funds anywhere in the world fast, safe, effecient and low cost without intermediaries.

[el kaka22]

Digital banks are not really that different from regular banks, the only difference is they will not have the tellers at the bank stores where we go in and get our money, that was something people did frequently 30 years ago and started to do it less and less thanks to ATM's and now they are doing it even less thanks to mobile apps.

So, even the regular banks are not as regular as we think and going digital with many stuff, so it would be impossible to not have a digital bank where everything related to your bank will be done digitally, but they will still charge you a ton of money for stuff that is basically close to free in crypto, sure not in bitcoin but coins like nano are faster and almost free when they are used properly, so digital banks or not, all banks still need to go or find a way to catch up with the times.

[elda34b]

No body will use the next generation banking, they will slowly cease to exist all together, and Libra PayPal would take their place for all the financial need for the true next gen.

You're really optimistic. What is the reason? Libra is not even started yet and lots of their partners are withdrawing their support. US government can kill them anytime.

Digital banking is already here, Libra is way too weak to even compete with a local bank.

[hugeblack]

Banks as an old idea even if we add some updates by making it digital and make all its service from home & without the need to go to the bank.
The next update will be the centralization of banks to reliable companies, as is happening now in Libra.
Satoshi's decentralization has eliminated the need for a third party to exchange between the parties and hence no need for the bank since it ensures that you get the currency and not its value.

[enhu]

Banking is still in the 2nd Generation while crypto in the span of of 10 years is already in the 4th generation. We've gone this far. I'm holding on to the idea that having a bitcoin wallet itself is like having a bank, so why need this 2nd generation banking?

If the Digital banking means the bank only exist online like a website alone, then this is going to be worse than crypto projects who after a day just disappear.  

[boltz]

The banks system was already digital even before Bitcoin was created. What you're trying to say is that banks will move towards Blockchain technology that will empower and simplify the banks system. Also , the 2nd generation of banks may buy bitcoin in order to increase their financial power alongside Governments who are doing the same so basically everyone wants a piece of Blockchain and Bitcoin , its just a matter of time until this will reflect on price.

[dothebeats]

As I previously mentioned, smartphones would be the ones revolutionizing the whole of the economic scene due to most traditional banks moving towards a more digital-friendly environment and making everything online. As the last ones of the people using passbooks come to perish, banks would surely be moving towards a more convenient and faster way of banking, although of course physical branches would still be handy for traditional services such as ATM card replacements and such.

[Kemarit]

But I mean it is already happening right? Smart phone are a bridge already, many banks offer loans thru online applications and you can even pay your bills by just using your smart phone, so yes banking system is going digital already. And they can't really fight this evolution, cash less payments, crypto's gaining momentum, etc. I guess traditional banks should not feel threaten by the whole digitization, they should embrace it, adapt. Let's say push themselves to use blockchain technology and see how it can replace their legacy systems and make it easier for them to transition in this new financial revolution.

[Kyraishi]

Yeah, it's pretty apparent this has happened, instead of a couple years back where we'd use credit cards and mostly cash to pay for things, we live in a world powered by smart phones.

Paying with your mobile had gotten so much easier in the past days with applications like Apple/Google pay. Your bills are paid online, and you get money instantly via apps like PayPal. Online shopping has also been huge for development and made shopping way easier.

The only way higher through this would be via crypto-currencies and blockchain technology.

[samcrypto]

Digital banks are already exist even before but they grow a lot since they tried to make an online transactions and with a help of cryptocurrency, I am sure they will continue to go up. Some of our banks in my country already adopting blockchain technology, they adopted it to improve their system and it works well for them. Cryptocurrency is a big addition to the banks with a lot more control from a users.

[Strongkored]

Digitalization will be implemented in many sector, as well as the Bank, there are some services that have begun to apply digitalization, for example in my country there are Banks that have made it easy to open account without having to go to their offices, so it can only by telephone and video call at the interview for filling out forms, so digital banks will really exist either traditional banks that migrate to digital or new one.

[ActAshton]

Or you can simply choose Bitcoin and be your own bank.
We cannot afford to recreate the physical bank on online world. That would be "out of the frying pan into the fire" kind of situation.
The whole thing could be optional. Those that prefer to be their own bank should be allowed to be their own. Those that prefer to have their fund in banks should be allowed to have their fund in banks.

With volatility at play, this still doesn't constitute as being a bank, unfortunately. I use to have the same mindset but volatility has rekt a lot of people in the past and will continue to do so in the future.

With stablecoins, this is an alternative option, but people need to figure out how to spend them. Fiat will be sticking around for probably the remainder of our lives and until then, we can take advantage of the current opportunities at play, especially if they are crypto-friendly institutions.