We can all agree that the world is steadily changing with technology taking center-stage chronologically. As such, everyone expects their respective industry to move along at a similar pace, and the ones that have their hands on the handbrake are slowly losing it.
One industry which is on the spotlight is the banking industry. Reason being, the blockchain technology is promising significant achievements in the sector which, not too long ago, most financial institutions were reluctant to buy the idea.
Customers Want a Frictionless Future
There’re no denying that the banking system has got its faults which need to be looked into such as the speed of the transactions, the nature of costs charged and the security risks involved when it comes to cross-border payments.
With the technology offered by the blockchain, customers now expect to do their processes anywhere of their choosing with zero friction. Whenever, the customers encounter some friction or pain point which inhibit their ease of achieving the goal, the view of the institution change which comes back to hit the banking brand hard.
Therefore, the traditional financial institutions have to take imminent action to ensure that they don’t lose firm ground. Perhaps, the only solution is to kill the pain points in their consumer experience by integrating the promising crypto technology.
Fintech Startups Carrying it Out
One thing that the fintech startups have done is finding the opportunities to eliminate the friction across the touchpoints in the consumer journey. By so doing, they are attracting more customers than the traditional financial institutions as they provide faster transactions which are very secure at the same time. And guess what? It’s coming as banking system the following suit.
Ripple’s xRapid Gets World Bank Approval
Ripple’s payment tool xRapid platform provides near-instant payments, and for that reason, the World Bank approved it to be used for quick bank transfer. xRapid will be used for the cross-border payments. Besides, Distributed Ledger Technology (DLT) will aid in remittance.
So, the primary reason is to eliminate the pain points since as noted already, Ripple provides quality services such as sending funds at almost zero cost and the funds get sent instantly.
It’s worth noting that, although initially, most financial institutions were reluctant in integrating this kind of technology, the time is almost here that they change their stands. The World Bank adopting Ripple‘s xRapid for its fund transfer may just be the beginning of a series that will follow, and slowly but steadily, all pain points might go away.
Image courtesy of Pixabay.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.