Financial Disruption: Overview
Financial disruption is a term that describes the radical transformation of traditional financial services by new technologies, such as blockchain and cryptocurrency. This type of disruption has given rise to an entirely new sector in finance known as fintech (financial technology). Fintech companies are using innovative business models, products, and services to challenge existing financial institutions. The result is reduced costs for customers and increased efficiency for businesses across many industries.
Blockchain Technology
A key driver behind this revolution in finance is the emergence of blockchain technology which allows digital assets like cryptocurrencies to be securely stored on distributed ledgers with no single point of control or failure. Blockchain also enables so-called smart contracts – self executing agreements written into code – allowing transactions between parties without requiring third party intermediaries or enforcing regulatory compliance requirements at each step in the process making it much more efficient than current banking systems. Cryptocurrencies are a form of digital money based on cryptography that can be exchanged directly between two people without going through any middleman such as banks or payment processors resulting in faster speed and lower fees compared to traditional methods.
Impact On Financial Services Industry
The impact of these emerging technologies on the financial services industry have been immense over recent years with established players struggling to keep up due their legacy infrastructure being incompatible with newer forms of technology causing them lag behind market forces driving change throughout different sectors including payments, lending investments etc..Furthermore ,the decentralized natureof blockchains takes away power from large centralised entities providing consumers & businesses around access world greater choice & freedom when it comes moving funds from one place another .Finally ,fintech innovations allow smaller firms enter markets traditionally dominated only big players thus increasing competition within industry leading better prices improved customer service all round .
