The global finance industry is massive. Global assets under management (AUM) is approximately $85 Trillions (https://press.pwc.com/News-releases/global-assets-under-management-set-to-rise-to–145.4-trillion-by-2025/s/e236a113-5115-4421-9c75-77191733f15f)
This massive industry is under attack from various angles. Yesterday I was at a brick and mortar bank. I like my client services manager (Let’s call him Mr.W).
Mr.W is a super cool guy and he is always smiling. But he couldn’t get me a simple transfer from one bank in US to another in India. It takes 5 business days!! Yes FIVE business days. And they call that service as some express or urgent service. And I have to go back to the bank again in 4 days!!
I asked him the alternative method. It happened to be the good old Wiring. The cost associated was “$50+”. Yes FIFTY dollars to send $465 dollars.
I was stunned and obviously frustrated. I have been a customer for years and this took me by surprise. Then I realized that tech will eat a lot of these businesses.
Blockchain WILL disrupt this industry for sure. Imagine a service which is nearly INSTANTANEOUS and almost FREE and can do it from your home or sitting in an airport or anywhere! It is already happening in various parts of the world. You can transfer money with WeChat, Whatsapp, even Facebook messenger. In US, there is a service called Zelle (with too many restrictions), still works.
You can send money to a cell phone or email!!! But US banks wont allow to send to another bank. And my dear banker printed me 5 pages of KYC to send $465 🙂 God bless the banker.
I recall this article which showed that out of Fortune500 in last 50 years, 84% of them are dead today. http://www.aei.org/publication/fortune-500-firms-1955-v-2016-only-12-remain-thanks-to-the-creative-destruction-that-fuels-economic-prosperity/
In next 10 years, I am happy to predict just a few banks will remain in Fortune 500. Most financial institutions will have either embraced blockchain fully and tightly OR they will be gone.
Banking is Dead….Long live Blockchain Banking