The future of the financial world is continually evolving, and the introduction of cryptocurrency has been changing its court. Goldman Sachs has been examining what the future banking industry will be like, which it published in a video “insights.”
In this publication, the company revealed that that cryptocurrency and accounts that support it will be part of the “bank of the future.”
In many different research studies, banks have clearly expressed the believe that this sector of fintech is a threat. Brandon Watkins from the Goldman Sachs Investment Banking Division said,
“What you’re seeing today is that new digital finance platforms are using differentiated, customer-centric products to build scale efficiently and much faster than ever before.”
A video shows that Watkins says that the right path is for banks to follow the latest fintech, which includes cryptocurrency accounts, since they have the ability to scale properly. Around 20 years ago, the video explains, a physical visit to a bank was necessary to perform any changes, and a bank card was issued after a signature.
The bank held complete control, though new financial institutions are coming out with additional products that will help consumers organize their money in their own way.
Speaking on the bank of the future, Goldman Sachs said that there were three trends that will determine it. Those trends include:
- Transitioning from offline to online banking. Living in a digital world, more and more customers aim to have full digital control of money matters. However, there are still conventional customers that side on the more personal approach of interactions at a bank.
- Placing trust in digital platforms. Over half of the public in the United States feels positive about trusting finances to a fintech company, rather than solely to a traditional financial institution.
- Personalization and tailor-made product. Goldman Sachs commented that there are countries around the world that are having a higher priority with these types of products. China is presently leading the way, though this kind of approach would be a major shock to the traditional system.