Optherium Labs is a one-stop-shop, providing everything needed for launching and managing your own neobank.
Digital banking is emerging as one of the fastest-growing segments
across the globe.
This rapid increase is drawing attention from enterprise stakeholders from
within the financial services industry, in addition to well-positioned BigTech players and disruptive start-ups on the outside. Coupling this fact with the constant delivery of innovative products out of the tech space, it’s no surprise that the banking and financial services industry is facing such unprecedented disruption.
Companies like Amazon and Apple certainly present a threat to market share in the financial services industry, yet consumers are still most comfortable forming a relationship with an established bank. The pandemic certainly opened up the eyes of consumers and stakeholders alike to the capabilities of digital-only bank services, also known as neobanks, but large shifts in consumer behavior have yet to occur. Regardless, PYMNTS surveys show that consumers, especially those from the Millenial and Gen Z cohorts, are interested in adopting the kind of convenient service structure that neobanks provide.
There is one major impediment to the adoption of neobanks and the delivery of financial services from outside enterprise companies: security. Data breaches and instances of fraud occur within even the most established financial institutions, leaving little confidence in the ability of
organizations to carry out these services without the proper
infrastructure. Luckily, there are innovative firms using highly secure
technology like blockchain and biometrics to help create neobanks providing both convenience and security.
It’s an issue that is unfortunately becoming all too common in the cloud era — the tradeoff of security for higher flexibility and user experience.
Particularly on the enterprise level, the use of multi-cloud application
environments is becoming a necessity, and that puts additional strain
on DevSecOps teams. High-profile security breaches and cyberattacks,
like the ones impacting JP Morgan Chase in 2014 or Equifax in 2017,
are an unfortunate byproduct of our digital era, and consumers are
exceedingly wary of their financial relationships for this very reason.
To bridge the divide between convenient and secure operations, enterprises need to take advantage of FinTech solutions based on the latest digital technologies. Decentralized ledger systems, automated regulation, and the use of biometric credentials are three major systems that financial institutions, large enterprises, and innovative startups can leverage to improve security and consumer confidence. Here’s what you need to know about these powerful technologies.
Decentralized blockchain ledgers are finally emerging from stigmatization and relegation as a technology with extensive enterprise utility. Not only
do they provide optimal security through the decentralization of data,
but they are also capable of processing a high volume of transactions
at an incredible rate. As governments and regulators across the globe
continue to adjust their stance on blockchain, enterprises across different industries are investigating the use of this technology.
Also published here.