Banks have not had the best of times this decennium. The backlash of the financial crisis, low interest rates, strict regulations, government control and low consumer trust have forced banks to change their general approach, shifting from money first to rules and risk first.
Technological innovations referred to as “Fintech” that use technology to provide automatized financial products have the potential to undermine the traditional positioning of banks.
Further treats comes from the current consumer attitude towards banks. Researchers have used to term “millennial time bomb” to describe the risk posed by the current generation that is wary of financial institutions and receptive to new innovations. Nowadays customer’s demand personalized service and products available with the speed of a mouse click. Therefore banks these days invest strong in technology. This opens up a market for what is termed “Regtech”, the technological response to regulatory requirements.
Read the full white paper (pdf) « From Fintech to Regtech: the possible use of Blockchain for KYC » by Initio Consultant Yvonne Lootsma.