BLOCKCHAIN IN FINANCIAL SERVICES

 Banks have been relying on information technology (IT) since the early introduction of the mainframe computers
in the late 1950s
 In 1994, the Web arrived, and with it the potential to offer an alternative front-end entry point for any service but
banks did not see the Web as a catalyst for bigger change. Meanwhile FinTech growth was happening in response
to banks’ lack of radical innovation. E.g. PayPal
 Blockchain promises to not only continue to unbundle the banks, but seems intent on disrupting a whole gamut
of traditional inter-institutional processes, from cross border to clearinghouses
 Possibility of Global Bank:
- Local regulatory hurdles do not really get the feeling of being global
- New decentralized networks also allow the trading of any digital asset, financial instrument, or real world
asset that is linked to a cryptocurrency-based token (a form of proxy attachment to a blockchain)
- Cryptocurrency wallets could become to the world of crypto-finance networks what the browser was to the
World Wide Web, and be these new entry points for monetary transactions
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Regulations versus permission less innovation:

Landscape : The landscape of blockchain companies that are targeting financial services can be divided across three
sectors:
 Applications and Solutions
(Brokerage services, Cryptocurrency exchange, Insurance, Payroll, Trade financial solutions, Investments)
 Middleware and Services
(Technology services providers, Blockchain platforms, Software developments environments, APIs)
 Infrastructure and Base Protocols
(Public and Private consensus Blockchains, Microtransactions infrastructure, Miners)
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Key ideas:
 Although a global bank or exchange is not happening any time soon, the feelings and behaviors of a global bank are needed. The
blockchain can help
 The Financial Services sector will need to stall new regulation while simultaneously updating the existing regulation to accommodate
the innovation introduced by the blockchain