Categories: Bitcoin Business

Fintech Startups are Overtaking Banks, Will Crypto Emerge as the Winner in Long-Term?

Click here to view original web page at

The business case for corporate investment in bitcoin’s underlying technology, the blockchain, is inevitable, according to a report.

Titled ‘Key Drivers, Emerging Trends, and Development in Corporate Banking,’ the study discussed how new competitors in the financial technology sector are overtaking corporate banks. It posed two key trends, Artificial Intelligence and Blockchain, the combination of which could serve corporates speedy financial services, including optimized utilization of supply chain, know your customer, identity management, and trading.

“The latest thinking in this area seeks to combine emerging technologies of AI and blockchain into a single proposition – the enormous, untapped source of data within blockchains being interrogated to unearth/create value, by AI,” the report read. “Big data providing the ‘quantity’ and blockchain – with its data capture, validation and assurance capabilities – the ‘quality’.”

Clients are the New Competition

Authors Finextra Research and Oracle Financial Services wrote that deployment of AI would see the launch of “cash management solutions” and the attainment of “governance and regulatory needs.” Such an infrastructural overhaul would require corporates to manage a massive amount of computational data while maintaining its integrity. Blockchain will be able to address such a challenge.

The authors added that it was likely for corporates to invest in a blockchain solution than seeking support from their banks. The statement followed a World Economic Forum research which predicted that blockchain platforms would store 10 percent of the world’s GDP in the next decade. The report added that central banks’ and monetary policies’ sluggishness was a roadblock before blockchain’s growth. But that was not deterring corporates from testing blockchain in their private sandbox environments.

That said, a bank had more hurdles than a corporate chain when it came to utilizing the digital ledger technology. That bought one more time against the other. For instance, tech companies such as IBM and Alibaba had filed more blockchain patents than Bank of America and MasterCard. Nevertheless, the BoA held the most at 82.

“Blockchain can facilitate the transfer of value (currency) of anything digital and could be deployed within a cash-pool to manage cash positions and liquidity requirements without the use of traditional bank infrastructure,” wrote Fintextra. “The corporate would have to invest in a blockchain solution and be able to manage it within their infrastructure, or banks might offer it as a dedicated service.”

Blockchain Not Ready, Anyway

The Finextra-Oracle report admitted that the business case for corporate investment in the blockchain would take more time. It could be due to the technology’s inherent issues, mostly related to its scalability in a distributed environment. Also, there are concerns raised about the blockchain’s potential use case over an already available database management technology.

breaking news as corporate America discovers that "blockchain tech" is just a slow fucking database

— Katherine Wu (@katherineykwu) November 12, 2018

“Banks are now working on various use cases leveraging the integrity of data that blockchain provides, thus creating a single ‘golden source’ that can be viewed by multiple parties. This is a key advantage,” reasoned Finextra.

Tags: bitcoin, blockchain

Titled ‘Key Drivers, Emerging Trends, and Development in Corporate Banking,’ the […]


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

Terrorists are turning to Bitcoin for funding, and they’re learning fast

Representational image of Bitcoin. (File: Bloomberg) By Nathaniel Popper Hamas, the militant Palestinian group, has been designated a terrorist organization… Read More

4 hours ago

Latest Faketoshi says he conveniently ‘lost the hard drive’ containing billions in Bitcoin

Just yesterday we told you how there was a new Faketoshi in town, staking a questionable claim to the Bitcoin… Read More

4 hours ago

Study Suggests Scarcity Could Drive Bitcoin Prices to $60,000 by May 2020

Share Tweet Send Share Bitcoin price predictions have been coming thick and fast in recent months as the world’s top… Read More

4 hours ago

“Bitcoin will never hit 50k” says crypto skeptic Peter Schiff

For a man that wants nothing to do with Bitcoin , economist and Euro Pacific Capital CEO Peter Schiff never… Read More

4 hours ago

Casa Releases Node Monitor Service to Improve Bitcoin Network Health

Casa, a crypto firm that provides a private key management service and Bitcoin node machine, has unveiled a node monitor… Read More

4 hours ago

ETC/ETH Technical Analysis: Ethereum Classic breaks higher

Ethereum Classic vs Ethereum: Classic is making a comeback today An important price level has been broken 0.037673 looks to… Read More

4 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More