Aquarelle  By A.W

Banks are overwhelmed by the current financial world.

The last half-century has transformed life from top to bottom: the economy, finance, education, instruction, fashion, the way of living, and last but not least, politeness. 

My grandfather, being a fruit grower, would be surprised to see an industrial, firm, and treated apple on my table. Just as pharmacists cannot control how clients use sometimes dangerous medications, bankers, even aided by AI, cannot prevent their clients from risking their assets in games of chance and casinos. 

Ideally, a household should divide its income into three parts: daily needs, pleasures, and savings. It is essential that banking institutions evolve in order to integrate new investment methods and rapid international transfers and be aware of their competitors among alternative banks. The speed of transactions and the growing demand for anonymous payments should be taken into account. Financial securities, metals, energy, and consumer goods experience significant volatility, which can fluctuate within seconds or hours. Global events, particularly conflicts, have a direct impact on the global economy. Investors must be able to adjust their positions at any time through instant operations, a service that should be accessible to both banks and their clients. to grow its money and manage unforeseen events such as serious illnesses or natural disasters.

Furthermore, it should be noted that many debts and transactions, including those involving institutional players, are carried out via blockchain, P2P, or digital gift cards. Although these processes are known for their confidentiality, they are traceable: each transaction is permanently recorded on the blockchain. There is also a noticeable lack of mastery of new financial practices among some bank employees, including in reputable institutions. For example, knowledge of essential documents such as the bank statement can sometimes be lacking.

Finally, the growing popularity of instant payment systems like MoneyGram and Ria meets the need to quickly send money to relatives living abroad, particularly students. In the era of cryptocurrencies, it is crucial that traditional banks recognize the increased competition from multifunctional institutions offering a variety of services in investment, instant international exchange, and alternative assets (currencies, precious metals, commodities, and real estate).

Banks and their employees struggle to keep up with the rapid evolution of the financial world. Over the past fifty years, all areas of life have been transformed, including personal finance management and access to banking products. Institutions must now adapt to new technologies, such as instant transfers, alternative banks, or anonymous payments via blockchain and gift cards. The volatility of values and the emergence of new investment tools demand increased responsiveness from both clients and banks, who often fail to keep up with these changes. The lack of technical knowledge in some employees and the competition from multifunctional platforms show that it is urgent for traditional institutions to modernize in the face of the diversity and speed of current needs.

My main intention is to contribute to clarifying an essential aspect of the transformation of the financial sector and to shed light on the major changes affecting this field today in order to promote a better understanding and to encourage reflection on current issues.