Rebuilding the Bank: New Business Models
Previous: The Threats Banks Are Actually Scared Of
If you think banks are just going to use blockchain to do the “same old thing” a little bit faster, think again. In Chapter 4, Pierluigi Martino uses a popular tool called the Business Model Canvas to show how blockchain is actually rebuilding the entire structure of a bank.
It’s not just an upgrade; it’s a total renovation.
A New Value Proposition
Banks aren’t just for holding money anymore. With blockchain, they can offer things that weren’t even possible before. For example, they can use data from shipping ports or insurance companies to help small businesses get loans faster.
Goodbye, Physical Branches?
We’re already seeing fewer bank branches on our streets. Blockchain is going to speed that up. By moving everything to digital platforms, banks can reach you anywhere, anytime, making those old brick-and-mortar buildings less and less necessary.
The New “Banker”
The people working at banks are going to change, too. Traditional banking roles are being replaced by:
- Blockchain Experts: To build the networks.
- Data Scientists: To make sense of all the new info on the ledger.
- Technologists: To automate the boring paperwork.
Here’s the problem: these people are hard to find. Banks are now competing with tech giants like Google and Meta for the same talent.
If you can’t beat ‘em, join ‘em
Banks are also realizing they can’t do this alone. We’re seeing massive partnerships between old-school banks and new fintech startups.
- Lloyds Bank teamed up with Komgo to digitize international trade.
- Bank Frick is working with universities to train the next generation of blockchain pros.
The Bottom Line
All of this is designed to do two things: save money and make money.
- Savings: Expected to be around $20 billion a year industry-wide.
- New Revenue: Serving the “unbanked” could bring in another $380 billion.
Are we there yet?
Not quite. A 2019 report showed that while everyone is talking about blockchain, only about 26% of EU banks are actually using it. The rest are still in the “testing” phase.
Tomorrow, we’re getting into the “boring but important” stuff: the rules. Who is making the laws for blockchain, and how do you stay out of trouble?
Next: The Rules of the Road: Regulating Blockchain
Book Metadata:
- Title: Blockchain and Banking: How Technological Innovations Are Shaping the Banking Industry
- Author: Pierluigi Martino
- ISBN: 978-3-030-70969-3