Bitcoin, now a decade old, was the first cryptocurrency to gain serious investor interest and has held its position as market leader. Although the volatile digital currency has experienced roller-coaster rides since its inception, it is popular for its attributes, such as decentralized, secure, peer-to-peer trading. And its acceptance as legal tender continues to grow. What considerations should investors keep in mind when weighing bitcoin as a possible investment asset?
Thailand’s sluggish economic growth has raised alarm bells recently, but its banking sector continues to push forward. Krungsri, one of the country’s top five banks, is guided by its mission to responsibly meet the needs of its customers and serve society through sustainable growth. In our interview, Mr. Pornsanong Tuchinda, head of commercial banking, discusses how by combining customer centricity with digital technology, the bank is achieving its goals.
There are times when no one wants to see history repeat itself, and that’s the case among today’s investors in technology stocks. Some fear that the dot-com bubble burst of 2000 may repeat itself 20 years later. Although some tech stocks may be overvalued, the flourishing Fourth Industrial Revolution displays no signs of running out of steam any time soon. Caution is advised but not panic.
There are enough new terms floating around banking to make one’s head spin, and along comes greenfield bank. This refers to the growing trend among incumbent banks to create standalone digital banks that are as agile and innovative as the fintechs and neobanks. After considering how difficult and expensive it is proving to be for banks to break out of their legacy-infrastructure moulds, this approach makes a lot of sense.
A persistent problem in Africa is the financial-inclusion deficit. With 11 million citizens in South Africa alone being either underbanked or unbanked, the need to gather them into the banking fold is urgent. Recognizing this imperative, innovative teams such as Nedbank’s Retail and Business Banking have prioritised customer-centric digital avenues to reach more customers, entrenching themselves as the money experts who do good and give clients back the gift of time.
In spite of the recent rise of protectionism amongst major trade partners, international trade growth is strong, with emerging markets providing the main impetus. Trade growth could be even stronger if not for the shortfall in trade financing supply relative to demand, a gap that is partly due to regulation compliance. Technology is coming to the rescue, not only in addressing the trade finance gap but ameliorating operations throughout trade channels.
The last 18 months or so have seen initial coin offerings (ICOs) play a hugely disruptive role in the world of start-up financing. Companies the world over have managed to raise hundreds of millions of dollars—if not billions—to fund their blockchain-based development plans
Many bankers love blockchain for its potential to maximize efficiency and productivity while slashing costs and security risks. But the crypto-currencies, such as the (in)famous bitcoin, tied to it? Not so much—at least not across the board. While giving the thumbs up to distributed ledger technology for its advantages in areas such as trade finance, industry leaders are maintaining a wary eye on cryptos, due to disadvantages such as volatility.
Blockchain—a cryptographic, decentralized distributed ledger system—is gaining acceptance and prestige as its multiple advantages, such as immutability, become clear, even to normally cautious financial organisations. But it isn’t all smooth sailing. Especially in Europe, some of the new data and privacy regulations clash head-on with blockchain and its attendant crypto-currencies. Can the technology overcome these hurdles and continue on its path toward broad, industry-wide adoption?
As FinTech companies disrupt the financial services industry with marketplace lending and blockchain-based supply chains, wholesale banks are meeting the challenge by reprioritizing IT spending and improving their innovation capacity.