Deutsche Bank, a German global banking and financial services company that has been independently running blockchain experiments, recently made a statement urging banks across the world to begin incorporating FinTech and digital currency business into their practices, or “risk disappearing altogether.”
More and more banks seem to be experimenting with digital currencies and other innovations in financial technology, but will the consequences really be that drastic for those who choose to give it a miss? The Managing Director of Deutsche Bank, Rhomaios Ram, thinks so. In an interview with Bitcoin Magazine, he stated that “Banks must change their attitude to FinTech companies in order to survive.” A rather drastic statement to make, but it was made based on legitimate reasons. Ram also stated that “…digitalization can become the new differentiator for banks.” With technology evolving at such a fast rate, Ram is correct; banks are going to have to step up their FinTech game in order to stand out.
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Doing so doesn’t come without its issues though. In the interview, Ram also discussed the barriers regarding implementing such technology into businesses, “…the biggest hurdles to adoption of new technologies and partnerships are regulatory and legal requirements…” Of course, as technology evolves, many more factors regarding, privacy, security, and safety are going to have be considered, especially if major financial companies are using them. If banks really must start digitalizing in order to avoid falling by the wayside, only time will tell.