Yes, you are correct. This is precisely the same territory that Ripple is going after. However, rather than being left in the dust IBM has been proactive and wasted no time in adding a Division to their Company exclusively devoted to Blockchain Solutions. Rest assured though IBM's award of this contract did not go unnoticed by other major players (i.e. Oracle, SAP, etc.), and we will see announcements from them as well in the not too distant future. Stated differently, if these other players do not become heavily proactive with Blockchain technology solutions very quickly, they will be like so many other companies that went belly-up, as a result of them wearing blinders to new disruptive technology staring at them in their face.
You are viewing a single comment's thread from:
Ha, in the case of banks, belly up might be a bold statement! But without a doubt this is very disruptive for their current business model and they have to adapt to it. My expectation is that if the banks can put something in place for SMEs soon(ish) that offers functionality in terms of transparency and fee reduction similar to Ripple - maintaining speed of execution and settlement of course - then current customers might not be inclined to change platforms simply because Ripple is a decentralised model. Now, this is assuming that the SMEs are not operating across many borders since this would change that equation. But I'm just trying to think from a customers perspective here where I believe they would be willing to pay a little bit of a premium for no hassle and perceived safety. Now, for new customers, this is obviously a whole different question but in the case of banks retention is (and should be) their top priority in my opinion.
Excellent points! Focusing on Banks using this as a means & method to retain it's current customers is an excellent observation, especially in a world where Financial Institutions are faced with competition and disruption associated with Cryptocurrency. With regard to my comment of going "belly-up" it was in reference to behemoth (and possibly slow-moving) companies who currently provide Computer & Database Solutions (IBM, Oracle, SAP), not Big Banks.