Banks are limited
blockchain tech will indeed remain an opportunity and early adopters will be the first to reap the rewards. I have talked about the fast pace movement of technology over time with personal questions like; 'is it just too fast?'. If it be a yes or no, the truth is, you have to try and stay as updated as possible. We've seen this massive disruption happening in the financial sectors. The early exucuters of transactions are facing competitors? The question of can the traditional banks withstand the test of time depends solely on what they will have to offer.
Before going any further, let's try and lay a foundation of what a traditional bank is; a government approved institution that helps in facilitating saving deposits and loan of money, it a place where money transactions mostly take place. Without further grammar, the word to note is 'transactions', just keep it in mind, we will make reference to it. What does Elon Musk do? Adding to that, another good example would be Amazon.
diversification is key to modern business. Mr. Musk is associated with space X, Tesla and X(formerly Twitter). We've heard his idea of turning X into everything app. Have you wondered what this would do to the banking sector? We've seen Amozon with their numerous diversified businesses, Jeff Bezoz is one heck of a mogul. The ability to tap from various sources will continue to be a hedge and this is an advantage in technological companies. You can become anything at any time, drawing customers and users to your direction.
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So it boils down to the earlier question of what is a bank and why are they limited. One word answers this two questions, 'transaction'. Everyone heading the bank way is either going to give(deposit) or get (withdraw/loan) money. Without this transactions, the operations of the banks ceases and the whole institution is rendered useless. Do you buy books from the bank?, do you stream vidoes from the bank?,how about music? do you trade the financial market from the bank? Do you watch vidoes from the banks? Does banks have a social media app that draws new minded users( or customers)? How about gaming? Of course not and this is the banking limitation.
Do you know what this mean? If someone or something else could offer exactly what they(banks) are offering with this additional features, the banks would or can be replaced. If I could make transaction from my social media app, why would I reach out to the bank. Elon musk has seen this opportunity and is trying to incorporate the 'everything app'. Will he he succeed? Maybe, yet even if he does, he would be facing another challenge; centralization.
This is where blockchain tech powered industries will come in. The potential of web3 will be fully let loose. There is transactions(finance), there is social media, gaming, lending, borrowing, music videos and lots of other packages presented to users in a decentralized manner. I don't know if you are fully sensing it. Truth be told, since the inception of blockchain tech, the only thing that is keeping the banks is the government, if they could withdraw their hands soonest, you'll come to realized the masses love the decentralized systems.
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The bank has been a rigid system and with no improvement overtime, it is definitely going to bite back. A lot of institutions are pondering upon the financial sector with the aim of giving out a better service. Adding to that, several inconveniences like loan difficulty, little or unfair APR when investing anf vice) versa when getting loan. There has been other restrictions associated with the banking sector that needs to be curbed. The idea of one product or one service will face modern era limitation. Even Wallmart is trying to incorporate something else into their platform to remain in operation.
The ides of Elon musk about X is good, Amazon is also doing good diversified businesses yet they'll be a superpower tech that will outpace their centralized operations. Ownership too will matter in the future of modern business and we have seen what web3 is doing in this very aspect. Can the banks amend from here? What will they venture into and how will they cope? Adding to that, in what platforms are they going to operate? I guess it's going to be the old centralized way which will be overshadowed over time.
The future of the business industry will go beyond just unique product or services. Users and customers alike will want to do almost everything in a single platform. This will promote convenience, save time and improve customer brand trust. Blockchain tech through web3 is going to astound the future of service and products rendering as it has introduced itself as an open source platforms that welcomes multiple services. Without doubts, tech inclined companies will continue to influence users. Beyond just services or products, they will be various opportunities to earn rewards when talking about the tokenomics in the web3 system of operation. Who wouldn't want to earn where he spends most of his time?
To conclude, let me add, the bank has proven to be a predictable place till date and this will be of a disadvantage to them. Have you ever told someone you are heading to the bank? Without him asking for why, the thoughts from here is always certain; for financial (transaction) issues. With web3 apps that will incorporate more services in a decentralized manner, one would ecpect to know more because of service unpredictability.
What are your views in this? Join in the conversation let's talk about the future of banks, web3 and blockchain tech.
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