Regardless of how you want to look at things, the financial sector is doing everything in its power to run itself into the ground. In the United Kingdom a new scandal has been revealed, where the largest work pension schemes prevent savers from accessing funds, and cash transfers are delayed by over three months. Something will have to change sooner or later.
The financial sector as we know it has undergone many changes over this last 12 months. Even though there has been a disturbing lack of innovation from within the sector itself, the accelerated development of new technologies is making up for that. If all things go to plan, technology firms will be able to offer access to the payments system without relying on larger banks.
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The world as we know it is being disrupted on all sides, and various companies are vying to be the top contender for their services. Transportation disruption is nothing new and there are several major companies working towards that end already. But in Asia, different names are appearing on the scene. Go-Jek and GrabTaxi might not be major names in the Western world just yet, but in Indonesia, they are two of the most famous services.
Make sure to read: Bitcoin Boosts Number of Non-Cash Payments In Asia
Traditional financial institutions are slowly starting to realize they have to innovate their business model, or risk becoming obsolete. Sending money around the world at these ridiculous charges, not to mention the amount of time it takes a transfer to complete, is no longer acceptable. TransferWise, a London-based money transfer startup, might be bringing something new to the table.
Emerging and developing markets, such as India, for example, are warming up to the idea of using decentralized payment solutions such as Bitcoin and other digital currencies. Looking at this from a financial point of view, India, together with China, are two countries working very hard to drive the growth of non-cash payments. Only time will tell if this move will help foster Bitcoin adoption in both countries.
The traditional payment sector is still struggling to find solutions against fraud, especially when it comes to online fraud detection. Credit and debit cards, as well as any payment processor making use of these payment methods, can be cancelled, reversed and disputed at any time. Merchants and retailers are expanding their presence online, which only invites more fraudulent payments. Bitcoin is a clear-cut solution to this problem, but maybe Ravelin has a temporary fix on hand as well.
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There are quite a few everyday consumers who wouldn’t mind switching retailers if they started accepting Bitcoin. Brand loyalty is not what it used to be a few years ago and there is very little competition between retailers in terms of pricing. The only key area to make a difference, is what types of payment methods are accepted and Bitcoin could be a determining factor in the next few years.
The world of finance has been in a state of flux for quite some time now and it’s only a matter of time until everyday consumers start to realise everything in this sector is being rehashed. For instance take a look at the most “valuable brands”; both Nokia and Pizza Hut have been dethroned by Lego and Paypal! Something just isn’t adding up; but the question is whether or not people want to see what is actually going on in front of their own eyes?
Make sure to read: Traditional Financial Markets Are as Volatile as The Bitcoin Price
There are quite a few major flaws when it comes to running a successful economy anywhere in the world these days. Politicians making empty promises and not delivering on them is causing a lot of financial havoc, especially where the job market is concerned. Saying “x amount of jobs will be added” sounds good when being interviewed by reporters, but the numbers don’t always add up.
The worlds of finance and Bitcoin are much more closely related than most people think. Any major development in either area will have a major effect on the other market. Although, Greece’s recent crisis did not boost Bitcoin adoption by all that much, it was yet another indication of how the current financial ecosystem is running on fumes. Portugal’s current financial woes will only strengthen that thought and might provide Bitcoin with the long-awaited boost it really needs.