At this year’s Seamless Europe in Berlin, I delved into how digital deposits are transforming banking, the hurdles in adopting CBDCs, the influence that DeFi is having on traditional banking, and the untapped potential in the API revolution. There is so much happening that forces us to reimagine the future of finance.
● The deposit business is experiencing a profound transformation with the advent of digital wallets and utility platforms. I see that day when all banks will compete with each other on issuing their own stable coins in lieu of their deposit business today.
● CBDCs face hurdles in their implementation, with slow adoption rates and the potential to disrupt traditional banking systems.
● The DeFi industry’s 24/7 operational model presents challenges for traditional banks, emphasizing the need for adaptation to compete effectively.
● The banking industry missed significant opportunities in the API revolution, contrasting with successful adoptions by tech giants like Microsoft, Adobe, and SAP.
● Silicon Valley Bank’s downfall is a stark reminder of the influence of social media and public perception on traditional financial institutions.
I repeated my clarion call to fintechs that started by wanting to revolutionize banking but ended up applying for banking licences themselves: If the product does not change, nothing changes!