While Fintech Disrupts Banks, the Blockchain Disrupts Fintech

A report from PwC is telling us that 83 percent of financial services companies believe their businesses are being put to risk by fintech startups while the number of worried management-level employees is going over 95 percent in the banking sector.

The report is based on a survey of 544 CEOs, heads of innovations, top management personnel and chief information officers in financial services companies from 46 countries around the world.

PwC made clear its trust in the blockchain by making deals with Blockstream and Bloq, and the professional services network also made threatening claims about the technology:

“In our view, blockchain technology may result in a radically different competitive future in the [financial services] industry, where current profit pools are disrupted and redistributed toward the owners of new, highly efficient blockchain platforms.”

PwC is also mentioning that using the blockchain for more efficient regulatory compliance and increased transparency.

The report also keys out the potential value of smart contracts:

 

“One particular hot topic is that of ‘smart contracts’ – contracts that are translated into computer programs and, as such, have the ability to be self-executing and self-maintaining. This area is just starting to be explored, but its potential for automating and speeding up manual and costly processes is huge.”