Cryptocurrencies to become the most disruptive technology in banking

September 20, 2018
Chris Wheal

More than half of commercial bank executives believe that cryptocurrencies will become a major disruptive force in the financial services industry, according to research published on Thursday.


Fintech provider Fraedom reveals in its study of 1,000 decision makers in the global banking industry that 56% of executives said cryptocurrencies would become the most disruptive technology within the next five years.

Just under half of the respondents – a little over 45% – also listed digital wallets as likely to have a major impact on the banking industry, while more than two-thirds – 68% – said mobile banking apps would have the biggest effect on commercial banking.

Regulatory responses drive innovation

Nearly half of the respondents – around 45% – said that major technological advances in the coming years would be driven by the industry’s response to increasing regulation as commercial banks adapt to the rapidly-changing regulatory landscape governing fintech innovation.

“Regulations have transformed the commercial banking sector over the past few years, and while this appears to be a restrictive approach, this research proves that banks are seeing regulation as an opportunity to adopt new technologies and improve customer engagement,” said Kyle Ferguson chief executive of Fraedom.

Greater investment in technology

As they adapt to this new regulatory landscape, executives say that commercial banks will invest more in their technology infrastructure, with 55% of those polled saying enhancements to data analytics and new security systems are likely to receive investment.

Ferguson added: “The research highlights that the commercial banking world is beginning to shift towards a more consumer focused approach.

“Business executives are increasingly wanting a real-time view for their payments, just like they can in their personal lives.

“This trend is also mirrored by commercial banks which are planning to invest in the key technology areas to make consumerisation possible.”

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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