Block chain technology will make it possible to have more transparent, verified and fast processes. There is no doubt that the block chain technology will have a significant impact on wealth management in the next few years.
Block chain technology will make it possible to have more transparent, verified and fast processes. Think about how to transfer encrypted currency between two people in a few seconds or minutes, while international remittances take a few days, cost is high and opaque.
Young generations I like encrypted currency very much, and the wealth management industry has been working hard to keep customer assets because it is passed to the child. Digital products developed by wealth management agencies are intended to partly respond to this key challenge, but add encrypted currencies to the equation means that the target is moving again, and suppliers must continue to invest and adapt.
Block chain technology has great potential in achieving data privacy protection, which is clearly an important field for private banks, family offices and wealth management agencies. For example, a cumbersome KYC process can benefit from block chain development. If we look at a country like Sweden, we can see how things will change through the use of block chains. Sweden launched a digital bank pass for everyone, which can liberate its banking systems, promote financial technology innovation, and simplify the process of transforming accounts, entrants and authorization customers.
In addition, block chain technology will also have a major impact on bank settlement systems. The block chain can make the settlement into a real-time phenomenon, reduce costs, trading risks, and obstacles for funding. It may also affect the cost of banks, which means they need other source of income.
Since the technology in financial services has eliminated the level and reduce costs, all of these may happen. The agency will need to continue to reduce costs and improve efficiency, but they must also focus on creating attractive rewards for customers. Many people seem to focus on the previous goals, but few people pay attention to the latter.
There is no doubt that the block chain technology is not only a new way of communication, but also possible eliminating cost level, reducing entry barriers, open ecosystems, promoting innovation and imparting end customers.