Home Business NewsBusinessBanking News Why banks are falling behind in the global fintech race

Why banks are falling behind in the global fintech race

by LLB Editor
3rd Oct 19 9:21 am

The CEO of one of the world’s largest independent financial organisations will tomorrow call on the EU to launch its own cryptocurrency in order to compete globally.

Joining a line-up at the Delta Summit in Malta that includes Apple co-founder Steve Wozniack and the Prime Minister of Malta, deVere’s chief executive and founder Nigel Green will say, “The European Union and traditional banks are in danger of epically falling behind in the global fintech race.”

His comments come after being invited to join a closed working business lunch on Wednesday alongside Malta government officials.

At the lunch Mr Green and the leaders and government officials discussed increased cooperation on the future of the digital ecosystem in the Mediterranean and beyond.

Ahead of the prestigious two-day Delta Summit, the deVere CEO notes: “There is no doubt that cryptocurrencies are not only the future of money, but that they are already having a major impact in the world of mainstream finance in the present.

“There are five main drivers for this. First, cryptocurrencies are borderless, making them perfectly suited to an ever globalised world of commerce, trade, and people.

“Second, they are digital, making them perfectly suited for the increasing digitalization of our world, which is often called the fourth industrial revolution.

“Third, they provide solutions for real-life issues, including making international remittances more efficient, and help bank the world’s estimated two billion ‘unbanked’ population.

“Fourth, demographics are on the side of cryptocurrencies as younger people are more likely to embrace them than older generations.

“And fifth, institutional investors are coming off the sidelines and moving into cryptocurrencies, bringing their institutional capital and institutional expertise to the crypto market.”

He continues: “Another significant reason why mass adoption is on its way is due to the fact the governments around the world are increasingly considering launching their own digital currencies.

“These include China – which has the world’s second largest economy. Similarly, Dubai’s government has pledged that it will launch a state-backed digital currency, EMCASH, as a payment system for goods, services and other transactions.”

He goes on to say: “Against this backdrop, it is completely bizarre that the European Union, the world’s largest trading bloc, has not yet vowed to do the same when cryptocurrencies are, clearly, redefining and reshaping the way the world handles money.

“The EU must embrace cryptocurrencies – they are here to stay and their dominance is only set to increase further. A failure to do so now could mean that it epically falls behind in the global fintech race.

“This would deny citizens all the associated benefits of digital currencies and it would be detrimental to the economy.”

Mr Green says: “It’s not only governmental organisations, the majority of traditional banks are also failing their customers in regards to fintech.

“They were caught off guard by the global crash. In the aftermath they were busy dealing with the new regulatory landscape that prevailed, evolving client expectations and, for some, the massive financial penalties.

“Fintech firms moved in and are filling the void left between what traditional banks are offering and what the ever-more digital savvy customer expects, especially in terms of experience.”

The deVere CEO concludes: “Crypto is to money what Amazon was to retail – and unless governing organisations, such as the EU, and traditional banks embrace it now, it may be too late to ever catch up in what is a truly global competition.”

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