Over the past six years, Bitcoin has seen its fair share of success, although some people might argue how important digital currency has become as of late. The main question companies and service providers should ask themselves is whether or not these disruptive solutions actively address and fix financial services in existence today. In some cases, the answer might be “not yet”.
Financial Products And Services Are Broken
Regardless of how one wants to look at the financial world today, the products and services offered by institutions are utterly broken and insufficient. While there are several reasons as to why financial services are beneficial to our society, there is plenty of room for improvement and alternative options.
Managing personal finances sounds like an easy job on paper, yet consumers are more than happy to relinquish control to bankers. After all, these are trained professionals to keep our money safe, secure, and accessible at all times. Unfortunately, events like the 2007 financial crisis, as well as the 2015 Greece debacle, paint a completely different story.
What many people are not aware of is that as well as providing the products and services we all know and use, banks and other traditional financial institutions specialize themselves in trading. Banks have internal deals with competitors and rivals, creating an ecosystem that is anything but transparent and far from beneficial to the end consumer.
Relying on the people who create the financial crisis to keep our finances safe and secure seems to be rather ludicrous. At the same time, most consumers don’t see any other option than going with established financial players. Times are changing, though, as FinTech startups and Bitcoin companies make a name for themselves on a global scale.
There is no denying the financial sector is most prone to disruption, as the legacy system has seen little to no innovation over the past 50 years. In fact, most of the aspects of money can be done by computers, as money has become a matter of ledgers dictating who owns what value at any given time.
One thing technology can’t address directly, however, is how bank customers feel as if they are being screwed at every turn. Every letter coming from the bank could be another bill or statement that will affect their personal finances, even though this is rarely the case. The trust relationship between consumers and banks is shattered, and repairs take a lot of time and effort.
Bitcoin And FinTech Are Knocking At The Door
One way or another, financial products and services will be improved to benefit the consumer. Whether that change will come through bank efforts, the FinTech sector, or alternative payment solutions such as Bitcoin and digital currency, remains to be seen. But rest assured, the winds of change are coming.
Both FinTech and Bitcoin startups have an important role to play in the future of finance as we all know it. By addressing the issues they are trying to resolve, customers will be swayed in due time. However, proper marketing strategies will need to be created to demonstrate why change is needed, even if that means rehashing the same information most people know about already.
How will the future of financial products and services look in your opinion? Let us know in the comments below!
Images courtesy of Shutterstock, Washington Post