Big Idea #7
It’s “Back to the Future” with Cash: Well, “tokenized” cash, that is. What’s clear is that digital assets will dominate our future. But think about how cash was born: as a way to track who was owed how much gold from a bank. Look for that same concept to hold in the future – although the assets in question will be digital tokens tracked by distributed ledger technology and fully backed by central banks. Precious metals optional.
Big Idea #8
Parallel Banks Not Allowed: Simply attaching a digital organization to an existing bank is why fintechs are going to put many traditional banks out of existence sooner than you think. For instance, Kingfield’s Craig Welch is creating new paths and simplifying workflows for income collection, but within systems at BNY Mellon that have existed for decades. “We’re making it more seamless for asset owners to be in touch with their custody bank,” he says. Kingfield’s beta goes live at the end of the year.
Big Idea #9
Best of Both Worlds: Ever hear of ‘Secret Computing’? Banks can share data and keep it private through encryption that safeguards information when it’s in use rather than when it’s in transit or at rest. There’s no trade-off between precision and privacy. How’s that for improving the client experience?
Big Idea #10
Find Out at the 2020 Conference: Machine learning is very close to helping platforms operate with a degree of general intelligence that someone might associate with the way the human brain works. In fact, a platform powered by natural language generation wrote this Top 10 list. Or did it?
Until we see you next year we’ll leave you with this thought: In 2000, Blockbuster Video decided not to buy Netflix, then up for sale for $50 million, or even to imitate its subscription-based business model. Today, Netflix has a market cap of $122 billion and Blockbuster, which had a very steady, profitable business model, is all but extinct.