The world of finance has come a long way. While the old guard has enjoyed decades going unchallenged and accumulating wealth, the arrival of new technology has been the time for young investors with IT smarts to not only make a pretty penny but also completely upend how finance works in the first place.
Naturally, resistance has been strong, but much like with any other good idea, it’s hard to say no to progress. And so, much like roulette sites with bitcoin are now quite popular, so is the financial system having to comply with some of the biggest innovative trends in the world that do not necessarily come within.
From Fintech to the use of blockchain technology in finance, many aspects are different today than they were 20 years ago.
Behold, Fintech in All of Its Glory
One thing that the traditional financial system failed to do is adapt to the simple fact that consumers matter. While credit cards have been dangled in front of trustworthy consumers as the carrot, debt has been held in reserve as the proverbial stick.
But no more, because fintech has made it possible for consumers to access far better offers. Whether it’s early adopters like PayPal or revolutionaries like Transfer Wise and Revolut, the world has changed. Banks are now competing with companies that offer similar services, but at a much faster pace.
Consumers are investing their funds in these alternative banks and solutions because they offer a significantly greater value in terms of payments and transfers. It’s not just fintech, though; blockchain and crypto have also emerged as worthwhile opportunities.
Fintech has been defined by innovation, and, as Roulette77 likes to say, you can achieve innovation by being open to new solutions. The fintech industry has indeed adopted innovation, whether it has been the use of blockchain for automatic and secure transfer authorizations or cryptocurrency, which is still a divisive topic but one that is becoming more widely adopted.
Alright, But What Are the Lessons Finance Learned from Crypto?
If we have to discuss unquestionable influences that the crypto sector has had on finance, we have quite a few possible topics to pick from!
| Trend | Why It Matters? |
| Decentralization | Decentralization truly matters. Having to wait for transfers in banks is just a complete waste of time, at a time when fintech and crypto have come up with a secure way to transfer money instantly |
| Transparency | You may argue that banks are safe because they follow rigorous rules, but they fail to actually achieve transparency – crypto achieves this and more without compromising safety |
| Innovation Matters | Crypto has been able to innovate virtually every day because it is less constrained by regulation, whereas banking is now catching up |
| Digital Currencies Are Coming | Last but not least, the simple truth is that digital currencies are coming, and there is no stopping them. |
In other words, the crypto world is not ideal – the fact that it is flexible and adaptable is definitely a boon, but then again, would you entrust your entire portfolio to crypto or stick to traditional finance instead?
The truth is that most people stick to traditional finance, and this is the right answer here. You do not want to be put in a position where you have to choose between the safety of your money and how fast and effortlessly you can move it around, for granted, and this is precisely why the financial industry is learning to be more agile, much like crypto and blockchain, while retaining its uncompromising commitment to safety.
Can Fintech and Crypto Do Better Together?
The simple truth is that the two sectors have been truly learning from one another in more ways than you thought possible. Digital currencies are coming. Sure, there have been some Luddite-like fears about “total control” by central banks, but cryptocurrencies are the answer to that.
Mediators are gone when it is your peers who are determining the rules of the game. Some fear that having a digital currency could make their finances too easily trackable by an overreaching state. Of course, this is a valid concern, but we also live in some of the best democratic times. What this means:
- Strong laws protect consumers
- Banking secret is still a thing – you cannot simply access a person’s details
- Bad actors are not hindered by the medium, but rather by active resistance
Shared Challenges, Shared Lessons
In other words, there is a lot that the two industries can teach each other, and mainstream finance is taking note because it is evident that adaptability is crucial for long-term success.
True, the stewards of mainstream finance are right – fintech and crypto often go to great lengths to accommodate consumers, but do they care about safety? Well, as some critics put it, did Lehman Brothers really care about the world’s economy when they went to nearly bankrupt it on dodgy loans?
The answer is – not really. What needs to be understood is that a legitimate company can go rogue. The fintech, crypto, blockchain, and mainstream finance sectors are not without their distinct faults – far from it – but they do share a commonality: an interest in ensuring that financial products are up to scratch.
The bottom line is, though, that mainstream banking has a lot to learn from its more tech-savvy counterparts.
