In the light of events throughout the last ten years, starting with the bankruptcy of Lehman Brothers, trust has only decreased among consumers of the finance and banking world(Bajaj, 2008). According to a PwC report only 32% out of 2000 people across the UK trust retail banks and only 15% trust investment banks (PwC, 2014a).This ultimately led to the decrease of the consumers’ trust in banks. Edelman’s Global Trust Survey of 2014 shows that banks are the least trusted of all industries at only 54% and technology the most trusted industry at 73%(Eldeman, 2014).
These numbers are alarmingly low and required some serious move to be made so as to restore some satisfactory level of trust among clients and in their banks. Banks are actually taking
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As the transactional latency increases, the systemic risk associated with the transaction also increases. The transactional efficiency in consideration with time can be improved by using new technologies.
The clearance and settlement procedure in financial services industry has not exploited the potentials of internet technology to a great extent. The clearance procedure is carried out through the third party custodians and clearing agency. The cross-service transactions from an entity to another or to an international bank usually take 3 days’ time in current clearing and settlement cycle.
The clearing agency hold key in transaction clearing of IOU from the stock exchanges. The clearing process usually takes t+2 days. If a stock exchange can work with smart contract driven clearing processes with open time window, it would radically change processes in stock exchanges. According to the industry news and reports from Asia’s largest stock exchange, IBM is partnering to experiment on clearing and settlement operations replacing, ASX’s current Clearing House Electronic Sub-register System (CHESS). The situation is not different in Europe, London stock exchange and others have already begun looking into the possibilities of Blockchain driven solutions to address the securities settlement concerns(Das,
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The innovative technology driven fin-tech companies especially in international money transfer market are growing rapidly by eliminating interbank transactional cost, offering higher levels of services. Transferwise uses peer-peer model which reroute transfer in opposite direction thus eliminating high banking costs in international money transfers.
On B2B market, according to a recent Goldman Sachs report, paper checks account for at least 50% of B2B payments. Moreover McKinsey & Company report predicts that commercial payments will continue to grow faster than retail payments (7 percent to 5 percent). Cross-border payments will feed expansion of payments. The contribution of cross-border payments to total payments revenue growth will climb from 5 percent in 2013-2014 to 14 percent in 2014-2019(McKinsey& Company, 2015). A highly scalable trustworthy payment system could reduce the paper checks, human efforts in verification and clearance
Where in 56 million payment cards were stolen and the issues related to the occurrence.
Staying true to them will guide us toward continued growth and success for decades to come. As you read more about our vision and values, you will learn about who we are, where we’re headed and how every Wells Fargo team member can help us get there.”(Wells Fargo, 1999). The low accountability Wells Fargo has behind their statement makes them look worse after their 2017 scandal. They have a clear indication of how Wells Fargo is supposed to be running the company, but the company has acted in a different manner. It makes you ponder how reliable statements of those at the top of the company are when they speak to the public. Even though Wells Fargo has made vast changes to their management team, one must wonder if they’re way of improving the company has changed over time. Wells Fargo’s replacement CEO for John Stumpf, Tim Sloan, told the Senate Banking Committee that, “[Wells Fargo] is a better bank today than it was a year ago” (White, 2017). A year later, 2017, Wells Fargo has made no significant positive progress toward turning the company back into what it used to be before the
It is easy to use portable and the transactions are done through Internet so very there is very less chances of robbery.
Bitcoin is a digital currency, similar to cash due to the fact it is instant, however, is not managed or controlled by a central government or organization. Instead, the network is run on thousands of independent user’s computers. None of these computers have more control over the network than any other computer. The network that Bitcoin was founded upon is based on 40 years of research in cryptography and over 20 years of research in cryptocurrencies; by thousands of researches around the world.
The foremost challenge was the seamless promotion of the existing banking system and channels for the installation of new state-of-art IT infrastructure. In this regard, the changes made to the structure and functioning of the financial institution challenged the regulatory structure of the bank.
Woda, K. (2006). Money laundering techniques with electronic payment systems. Information & Security International Journal, 18, 27–47.
No, it is important, if confidence is to be unshaken, that banks appear to be like other businesses, when, of course, they are nothing like other businesses. This means that banks must be allowed to fail, even though they are the source of modern money.
During this problem happen, there were 100 million transaction is being effected. The deleted information is reenter back to the bank computer system. This problem is take time to solve it. Because of this problem, the bank is promises to all the customer that being effected by this problem that they will reimburse the fires and the late payment f...
Over the last ten years people in the United State and around the world have heavily relied more on their debit or credit cards to process transactions of their purchases. In the old days it used to be when you would get your paycheck on Friday and rush to the bank during your break or lunch in order to cash withdraw your funds or deposit them into your account. It used to be where you carry cash to buy groceries, pay bills, and go shopping. Now some people don’t even set foot inside their bank branch because they are paid using direct deposit or the funds are loaded into a debit card provided by their employer. Many employers from around the globe don’t even issue paper check anymore.
receiving money by means of computers in an easy, secure and fast way using an account-based system. This can be
Digital money is undeniably convenient; anyone who has used a credit or debit card understands this. However, the era of digital money is only beginning; rapid technological advances will continue to make paper money a remnant of the past. Several innovations are already lessening the burden in your wallet. For instance, the seemingly innocuous mobile phone is actually playing an increasing role in facilitating monetary transactions, especially in Asia. Already, in Japan, large companies such as Coca-Cola have sanctioned vending machines that are not only compatible with common cell phones but also allow consumers to earn credits for using them (Kupetz). In this regard, the United States is strikingly behind the times when compared to other countries. Another new technology in the vein of mobile phones is no-contact cards. These innovative cards do not require a cashier to conduct a transaction; one simply holds a specia...
Communication modern technological tools that have been enhanced by Information Technology are having an impact on changing the very structure and communication of banking. That is, clients are enabled to make their banking transactions whenever and wherever they want. Bank clients, by just logging on their online account, can transfer any amount of money from their account to any other account, check their last processed banking transactions and apply for loans and other banking services. According to Keyes ( 2000, p.591) 'electronic checks provide consumers with the benefits of convenience and safety while allowing billers to maintain their existing depository relationships with their banks'. Further, e-mails has enabled bank employees to notify their customers of any new enhanced bankin...
...ng an acceptable form of transaction.Governments need to be more transparent to the public.A lot of ‘under table’ transaction take place in the most basic everyday services(passport,license, tax).Such services has the capability to go online reducing the red tape as money is only used via online transaction.
The use of credit and debit cards today are taking a tour in the sense that electronic cash is becoming more admissible as the world makes a switch towar...
A cashless society will further improve the globalisation that characterise our present time. The computerised systems can be used to decrease the quantity of paper trail therefore substituting paper cash with cashless credits or electronic money transfers. However, in a cashless economy, this will change with certain crimes almost eradicated. It will also be faster to generate electronic payments than cash as Near Field Communications (NFC) chips make their way into more payments cards and mobile handsets as well providing protection not applicable to purchases made using cash. This technology is simple with low power wireless link evolved from radio-frequency identification (RFID) tech that can transfer small amounts of data between two devices identifying us and our bank account to a computer. Another benefit of drawing nearer to a cashless society is that other companies are providing pioneering cash-free solutions to the payment related problems we come across. For example, WisePay, a provider of e-payments services, is deploying technologies that ensure parents no longer have to worry about sending their children to school with cash to pay for meals, excursions and other fees that will eliminate the likelihood of being caught short for cash or children misplacing money. The Government also has valuable explanations why they may deem to turn away from cash. Due the main factor of printing and distributing cash, not to mention ensuring the economy is free from forgeries which are all costly endeavours estimating that the cost to society of using cash is between 0.5 and 1.5% of GDP annually. In addition, there are many technological innovations that propose there is a real enthusiasm for an alternative to cash with the upsurge...