A Mindset Shift Among Incumbents!
Those in the fintech and crypto space have gone from being the problem wild child to the cool kid on the block according to Martin Bartlam who shares some of the insights from DLA Piper’s recent report ‘Digital Transformation in Financial Services’ - which throws up some very interesting findings.
Not least that there’s been a massive shift in the mindset of the big players in traditional financial services. It has become clear that blockchain technology, cryptocurrency and challengers in the space are here to stay. And, as Martin says, it’s those countries, those big players, who try to ignore them out of out of existence who will ultimately be the loser. The financial services space is changing from one where the big players are guarding their backs to a space where collaboration and adoption of new technology has become the new normal.
The report covers the evolution of disruption; collaboration and investment and working with those who were previously competitor; the shifting landscape of regulation, payments and cryptocurrency; and cyber security - and how all of these are changing the face of traditional financial services.
Martin’s final comment: this is now happening and cannot be ignored. Those countries supporting innovation will do well; those who sit on it will be left behind.
- 82% of participants are concerned not enough is being done on cyber security
- The use of DLT can be part of financial services and cybersecurity solutions
- Regulators in the US are encouraging the use of blockchain as it makes transactions more traceable
- Half of respondents still felt regulators were restricting development although it was seen as more positive in the Singapore and the UK. Those in the US and Hong Kong found regulators more restrictive and negative
- The efficiency arising from the digitalisation of money is more likely than that central banks will be holding or banking Bitcoin any time soon
- Change in financial services happens very slowly even if it can bring improved efficiency, security and ways of working
- Innovation is now here to stay. Thanks used to try to negate cryptocurrency, and ignore it out of existence