Banks all over the world are struggling to collaborate with fintech startups. These new up-and-coming companies have the power to make banks lose control over digital payments in the coming years. A new report by the Boston Consulting Group has warned financial institutions of this impending change. Although Bitcoin is not mentioned specifically, some of the bullet points are telling an interesting story.
Digital payments are, for most banks, another way to tie customers to their brand. But the report by Boston Consulting Group goes to show digital payments are about so much more than ‘pure payments”. In fact, banks need to come up with a way to minimize the complexity of their systems, while still providing top-notch security standards.
Banks Need To Step Up or Shut Up
Transactional banking is coming to change, and financial players may be all but too late to go with the flow. The reason why fintech-based digital payments are taking off is that they are not limited to just one or a few banks. Instead, most solutions let anyone send payments nationwide, or in some cases, even worldwide. For now, banks cannot compete with this new