As much as digital currency enthusiasts would like to steer away from the banking system as we know it today, collaboration between both worlds will be quite important for the foreseeable future. Even Santander’s, Mariana Belinsky, seems to think along those lines. Any innovation in the Fintech industry will need some form of support by traditional financial institutions and Bitcoin – or Ripple, in this case – are no exception.
Unique Opportunities When Blockchain and Banks Come Together
Santander is one of the frontrunners when it comes to exploring the boundaries of digital currency and blockchain technology. Over the past year or so, its strategic investment division Santander InnoVentures has invested in Ripple, one of the digital currencies trying to establish a bridge between a public blockchain combined with a centralized coin issuer.
FinTech innovations will be a force to be reckoned with in the financial sector and Santander InnoVentures acknowledged that fact quite some time ago. Digital currency is a FinTech innovation in its own right, as the realm of financial innovation is much broader than most people give it credit for.
Distributed ledger systems, based on blockchain technology in one way or another, are one of the most promising cost-cutting measures the banking sector has ever seen. Additionally, the blockchain will be able to deliver fundamental changes to the entire banking infrastructure, as well as the processes at the core of the financial services industry.
Santander Innoventures’ main goal is to provide strategy to any company or entrepreneur venturing into the world of FinTech or blockchain technology. For the time being, their main investment “targets” range from lending to wealth advisory, and payments to infrastructure and data analytics;
Ripple seems to be a good fit for Santander InnoVentures so far, as their philosophies align quite well. Ripple covers payments, infrastructure, and uses the open ledger technology known as the blockchain. But Ripple is not the only use case of interest to Santander InnoVentures, as the team keeps an open mind and a keen eye to any project in the blockchain ecosystem.
Santander InnoVentures Feels Blockchain Regulation Is Needed
Despite the overall excitement in the blockchain technology sector, Santander InnoVentures remains cautious regarding jumping on new projects. Key challenges such as regulation and legislation make it difficult to make investments in the blockchain space right now. Validation by regulators is required for certain implementations of this technology.
Additionally, banks are more than happy to advise startups in any way possible, even in the areas where regulation and legislation is concerned. A lot of startups launch a new project without the required expertise to check all legal and regulatory boxes, which is where banks could play a positive role.
Images courtesy of Ripple, Santander InnoVentures, Shutterstock