Flipping the Banking Industry

With the rise of technology, banking has changed dramatically. The industry as a whole is older and is not making an effort to shift its technological focus. Check out this review and find out why the banking industry is undergoing a major overhaul.

The history of money is an interesting one. The first banks were established to protect wealth. The banking industry has played an important role in facilitating trade and distributing resources since the ancient empires. Today's modern day economy still relies on banks!

The Troubles with Traditional Banking

• Legacy Structures - The banking industry has been stuck in an old, outdated data set that was originally designed for security and stability. These legacy structures are slowing down digital adaptation of the whole sector as we know it today - but there may be hope on the horizon. Changing these legacy structures without changing the whole system would result in a total collapse of operations.
  
  

• Strict Regulatory Standards - The current banking regulations are costly and there's not much room for investment in future-forward technologies because of it. With most funds going towards securing a capital asset ratio, cash reserve requirements as well as statutory liquidity ratios that need to be met at all times; banks just cannot afford to develop better banking technology.

In fact, it has been reported that banks are paying $270 billion every year just to be compliant.

• Tech Giants Are Here to Change Everything - The FinTech revolution has arrived and it's only just begun. With financial firms across the world struggling to keep up with innovations, third-party financial technology providers are swooping in to fill the need. As payment technology is quickly becoming an essential part of our lives, banks must start offering relevant services that we can use remotely.
  
  With the pandemic and digitalisation, every person with internet access has most likely engaged in some form of interaction with a FinTech company. Whether it be to pay for something or receive funds from an app on their phone - these types of innovations are changing how we live our lives.
  
  

• Cost of Keeping Physical Banks - The cost of running a bank branch is staggering and it's not even factoring in the other expenses. Keeping up with staff salaries, employee training costs for new employees as well as retaining experienced ones can be tough without proper funding from management!
  
  With the full operation concentrating on keeping branches afloat and functioning, the thought of integrating changes that can mess up the whole system is a big risk. Afterall, there are risks in changing your company’s infrastructure when everything is running beautifully. 

Upgrade Your Business Operations 

The banking industry has been making slow but steady progress for years now. However, it is still changing and the ways in which you can do business are impacted by these changes every day- whether they be good or bad!