The banking world is finally opening its eyes to what is being called the “blockchain-banking revolution” because of success stories from Germany’s Fidor Bank. Fidor Bank is now the most Bitcoin-ready bank in the world and they just might become global financial leaders if the rest of banking world doesn’t start catching up.
How do you become ready for something revolutionary when traditional systems won’t seem to budge?
We’re taking cues from investor-entrepreneur William Mougayar’s piece on coindesk.com and we’re hoping the key decision-makers from banks worldwide could find time to chew on these ideas.
We start with what banks should NOT do, which is simply automating old processes. It’s not enough to go mobile, have an updated personal banking site, and load transaction records from anywhere at anytime. To truly embrace Bitcoin, one has to think further, dig deeper, and come up with future-ready designs.
This applies to the entire banking process so it will never be enough to focus on just one facet of banking.
- Get the right leader.
The right leader should be a master of re-engineering. He or she should understand how implementing new technology would benefit the company in the long run instead of focusing on the immediate future. The new leader has a tough job ahead: spreading education, improving acceptance, and most of all, just keeping things together as new systems are in their transitionary phase.
This could be the most difficult job to do, but it is also the most important one.
- Mine bitcoins. There is no other way.
Invest on new computers that will mine bitcoins or other cryptocurrencies so you know what the new world is like. There is no better way to learn the blockchain trade than to be a part of it.
- Educate your staff.
This process will take time but if all goes well with training, then your bank will be ready to face whatever obstacle the new world will bring. There are numerous credible courses, platforms and tools available for widening Bitcoin knowledge. Make sure at least 10% of your best people are in on it.
- Don’t invest in blockchain startups.
It’s not enough to invest in a startup. You have to become one. Get involved instead of being just a spectator of this phenomenon. Once you know the ropes of technology-driven start-ups, your banking processes will improve with clarity you can’t get any other way.
- Buy or partner with a Bitcoin exchange company.
There is a Bitcoin exchange company for every major bank out there and you should find yourself a company that will best suit your needs. These exchange companies have already developed the basic infrastructure for Bitcoin processes. Your goal is to improve the customer’s wallet experience.
- Work in real time.
Get rid of as much intermediaries or third parties as possible. The more in-betweens in every transaction, the more delays, the less satisfied the user becomes. You have to think in this mindset because the digital world runs on a currency more valuable than money, and that is time.
- Provide cheap remittance.
The age of wire transfer fees is over. Decrease transfer costs with Bitcoin, if not, eradicate them completely. Do this and watch your customer base grow.
- Keep on innovating.
Don’t stop at just being a Bitcoin-savvy bank. Appoint task forces or committees dedicated to improving new technologies and discovering new initiatives that will make everyone’s lives easier not just for today, but also for the future.
Of course, no revolution can be completed in just 8 steps, but here is groundwork for how to get things started. If you feel like your bank is stuck in the rut of tradition, indecision and narrow-mindedness, why not consider these initiatives? See what works, report what doesn’t.
After all, if there is one major lesson from all this digitization, it is that we can no longer live as separate entities. We must all stay connected—in finance, in business, in the day to day—to thrive.