THREE TECHNOLOGIES DISRUPTING TRADITIONAL BANKING INDUSTRY

Presentation by Ritchie Capital Management

Fintech has expanded its

presence in the financial sector

quickly in the past few years with new innovations rapidly entering the space

regularly.

Image source: forbes.com

With the advent of internet

connectivity, financial products are evolving to fit

new systems.

With technology advancing at

breakneck speeds with better

efficiency and scalability, how will traditional banking

fare in comparison?

How will yesterday’s

financial answers do versus the

fintech revolution?

Image source: tonetag.com

Ten years ago, many of the services offered today were in the ether -- not yet invented. Now, with Silicon Valley infiltrating every day vernacular, people are starting to see tech -- even fintech -- as old hat. It’s no

surprise that technologies like streaming music, eBooks, and shopping online will

translate seamlessly to banking.

HERE ARE 3 SIGNIFICANT FINANCIAL INNOVATIONS

THAT HAVE PAVED THE WAY:

#1. BITCOINA digital asset and a payment system invented by

Satoshi Nakamoto, who released it as open-source software in 2009, Bitcoin is a currency system.

BITCOIN:

The peer-to-peer system allows transactions to

take place user-to-user, without a middle person.

Image source: money.cnn.com

BITCOIN:

These transactions are then verified by network nodes and recorded in a public distributed ledger

called the blockchain -- which uses bitcoin as its

unit of account.

BITCOIN:

Since the system works without a middle entity or admin, the U.S.

Treasury categorizes bitcoin as a decentralized virtual currency.

BITCOIN:

Though other decentralized systems have

preceded Bitcoin, it is the largest of its

kind in terms of total market value.

#2. API (APPLICATION

PROGRAMMING INTERFACE)

In computer programming, (API) is a set of protocols and tools for building software and

applications.

API:

An API can have many applications, some being web-based, operating,

or database systems.

API:

It offers ways to develop

applications for systems using

specific programming

language.

API:

A programmer who develops an

API for Android can interact specifically with its hardware.

API:

APIs are a common way

technology companies

integrate with a common business

ecosystem.

#3. OPEN SOURCE

MOVEMENT IN FINANCIAL SERVICES

This is community movement of developers attempting to work together on the same project.

Image source: techcrunch.com

OPEN SOURCE:

Companies like Mozilla and Allevo are paving the way

for open-source domains in

banking transaction-processing software.

Image source: www.globoforce.com

OPEN SOURCE:

OpenGamma, a UK startup has taken this a step further to provide a risk

analytics platform.

OPEN SOURCE:

Open source financial

applications are extremely attractive

because they are available for use on

the Cloud with a growing number of them available on mobile devices.

OPEN SOURCE:

As many users are using their

smartphones to perform banking operations, this provides great

ease of use.

Being as these are only three of the innovations already establishing a foothold in everyday banking activities, the days of

the tried and true traditional banking systems may be numbered. Though the brick and mortar aspect of banking still

holds relevance, ten years from now, who knows?

SOURCE:

http://bankinnovation.net/2014/04/four-technologies-that-will-revolutionize-financial-services/

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