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- Fintech on Blockchain is fast disrupting the financial industry
- The speed and scale of this disruption will mainly depend on the adoption of the new economy by the users
Gerald Fenech ContributorÂ
Fintech on Blockchain is fast disrupting the financial industry. The speed and scale of this disruption will mainly depend on the adoption of the new economy by the users. People have spoken, everyone is tired of black boxes, we want to be the ones to determine how much we pay for the transfer of information and finances between us.
Why long, expensive money/asset/information transfers with the participation of several intermediaries through multi-layer systems? We do not wait for days to send urgent mail across the world. We expect the technology to work for us. Then why should we accept long lead times for cross-border payments? Could it be a question of trust?
Perhaps, we still rely on traditional banks to provide consultancy, security or dispute resolutions. We rely on banks to protect us to ensure that the counterparty will meet obligations. Banks are seen by government institutions, as guarantors for safeguarding our rights and contract agreements.
But the problem remains; banks are slow at solving our problems and this slows down the markets. Time costs money and, in order to validate each other, we are paying huge commissions to third parties for this process. Anonymity does not exist, yet we want to understand that those who we deal with go through a clear verification procedure to provide the legitimacy of transactions.
One interesting company which aims to offer change the way banking is done is Platio. It claims to be one of the first fully licensed companies that aims to provide the complete spectrum of services in its multi-asset banking system. Platio’s function is banking as a service and its CFO, Irina Berkon certainly has her ideas clear on where blockchain and fintech are going.
“The future is in blockchainization and tokenization of the finance industry. Blockchain is the most convenient environment in which AML regulation can be applied. All transactions have trusted track records. The wide spread of blockchain in the finance industry results in self-regulation of the financial system and the best option for further development, Berkon says.
Now, let’s not confuse blockchain with unregulated crypto transactions. Legitimacy and regulation of all transactions is required. As soon as the asset is converted into cash, regulation must kick in.
For people in their early and mid-twenties, when reflecting on their parent’s life, though full of admiration for putting up what they had to in order to get where they wanted to go, feel that since tomorrow is never guaranteed, there is a little more emphasis on living in the moment whilst still planning and saving for the future.
The idea that a bank could be part of that, instead of being the nightmare that they tend to be, with inconvenient opening times and red tape galore is very intriguing. Now when I previously stated that there is a bigger sense of carpe diem with millenials, I do not mean in a frivolous way. Rather however they seem to invest more in wellness.
Millennials would perhaps gladly invest 20 minutes of their precious time into a TED talk, on the off chance that it might inspire us or change our perspective. A criticism aimed at forty-somethings like me would be that we will never bother to listen to someone not known to be an expert on a subject, talk about it. We would be full of questions like, “Why should I listen to him/her?†or “What does she/he know about anything?â€
Moreso in today’s world of social media, where most of us seem so connected…but only on the surface, are really quite lonely. Again the idea of emotionally connecting to a bank is really quite radical. Moreover, a bank that goes the extra mile and tries to connect you to like-minded individuals or a community even to help them reach their full potential, their authentic self.
With other online banking apps and systems, like Revolut being such a hit, clearly there is a huge gap in the market that is yearning to be filled. Mazlow is meant to help to foster excellence and help twenty-somethings reach their full potential by not only being a bank, but also a mentor on their journey through life. To embark with them on their personal development journey.
Having been an entrepreneur from an early age, initially in the Sports & Entertainment sectors and more recently as an Ambassador for a Blockchain technology company, Mazlow founder Kash Amini said that he came to realize that consumers are looking for much more than just a product or service.
Mazlow founder Kash AminiMazlow
“What is missing from most businesses, and particularly in finance, is a focus on authenticity and an investment in aesthetics that will cultivate and foster an emotional connection between the product or service and the ultimate end user, the consumer themselvesâ€.
Mazlow claims to have pioneered the theory of the hierarchy of needs, the pinnacle of every human’s life being self-actualization – to be your own authentic self. They promise to help people to become their authentic self by helping them grow their community so they feel supported enough to succeed. Though it may seem like a millennial’s dreamboat, we struggle to see how speeches and a community can really lead to growth and so-called self-actualization.
Ever looking to the future, Mazlow also gives users access to 5 cryptocurrencies – which is supposedly the next big horizon in finance and banking. Designed by a veteran entrepreneur, Mazlow is certainly promising and is definitely an original idea however it remains to be seen whether they can actually deliver on all that they pledge. A personal touch is certainly needed in the cold world of banking but catering to the specific niche of millennials may backfire altogether. After all, everyone wants to reach their potential, however, whether financial health really could lead to overall well being may be a bit of a stretch.
I am an established journalist with over 15 years of experience in politics, economy and sports journalism. I have now specialized in crypto and blockchain and have taken on several high profile jobs in this space.
Source: https://www.forbes.com/sites/geraldfenech/2018/12/14/banking-and-fintech-on-the-blockchain/#3d54687d5bbe