Skip to main content

Finance Services Industry

Diagrams | Matrices | Thinkers

Why do people trust their savings (pension funds) with banks?

Cryptocurrency and blockchain technology are fundamentally transforming the banking sector in several key ways.

Will banks follow the path of telcos?

Jobs to be Done​

Forces​

What forces are driving innovation and transformation?

See market forces

Adoption​

What will be the Trojan Horse?

Will gaming ecosystems in time become the primary financial centres of the future?

  1. In-game crypto payments?
  2. Institutional DeFi Mullet

Payment Systems​

Traditional banking is being disrupted through faster, more efficient payment solutions:

  • Near-instant cross-border settlements using stablecoins, compared to 1-5 days for traditional SWIFT transfers
  • 24/7 availability of transactions versus limited banking hours
  • Significantly reduced transaction costs through elimination of intermediaries

Asset Management & Trading​

Banks are adapting by integrating crypto capabilities:

  • Tokenization of real-world assets like property, commodities, and securities
  • Development of crypto trading desks and custody solutions
  • Creation of crypto investment products like ETFs and yield-generating savings accounts

Infrastructure Evolution​

Traditional banks are embracing blockchain technology through:

  • Development of private blockchain platforms like JPMorgan's Quorum
  • Integration of blockchain for loan origination and securitization processes
  • Implementation of smart contracts for automated transactions and settlements

New Banking Models​

The industry is seeing the emergence of hybrid institutions that combine:

  • Traditional banking services with crypto capabilities
  • Integrated fiat and crypto accounts
  • Crypto-backed lending and credit products

Regulatory Framework​

The transformation is driving regulatory evolution:

  • Development of clearer cryptocurrency regulations
  • Integration of compliance frameworks for digital assets
  • Collaboration between banks and regulators to establish coherent frameworks

Rather than replacing traditional banking entirely, cryptocurrency is catalyzing a hybrid future where traditional and digital finance converge, creating more efficient, accessible, and innovative financial services. Banks that successfully adapt to this transformation while maintaining regulatory compliance and customer trust will likely emerge as leaders in this new financial landscape.