- Monday 09 November 2015 13 : 53
Just as earlier computer manufacturer took over the business of the typewriter manufacturers, there are now other providers who tear more and more banking services per se. This had far-reaching consequences,
says the financial expert Judith Vogt. By Judith Vogt, CEO of Vogt Consulting
The payment service is accepted more and more by companies like Alibaba, Apple, Amazon and Google. Even loans and mortgages wrap now also to service providers from.
come for the investment advisory and asset management automated trading systems and “Robo Advisors” for use. In the absence of adaptation to new technologies, changing customer requirements and laws the ancestral institutions threatens quickly once the bankruptcy.
What does this mean for customers?
In the past October was the Swiss private bank Hottinger, who could look back on a more than 200 year old tradition in bankruptcy. This was caused by over-indebtedness, because the bank had to make high provisions due to the tax dispute with the US. The Bank missed it, to dispose of contaminated sites, as they managed untaxed money from American customers. What does that mean for the bank’s customers?
Cash balances up to CHF 100,000 are insured and will be refunded to the customer. Securities owned by the customer and can be transferred to other banks. Cash holdings of customers more than 100,000 will fall by the current state of bankruptcy and entailing the loss of customers.
Beware of false advice
threatening trouble with the Banks also directly from the customer side. Is an international bank is not perfectly familiar in every country with the national provisions in force and protected, customer complaints may be about for negligent advice the Bank make life difficult.
As soon as a bank serving outside their ancestral area of law services and products, they must be fully adapted to the applicable national law.
Let’s take. In the event the Bank Safra Sarasin, which was sued by a customer in Dubai on incorrect advice from the court and the financial center Dubai got right If the customer wins, ultimately, go his claims in the two-digit millions.
Apple clock is also a wallet
The new block chain technology not only replaces the banks as providers of financial services, but also its function as an external gatekeeper. By means of new technologies can be handled directly from person to person without a bank transaction. The new providers offer only the technology available. Consumers use the system. The Apple Watch is the purse.
The money is on the iTunes account. With the secret code “Sesame you open” credit on smart phone or from the Apple Watch the customer is transferred to the account of the seller and the customer receives the goods. This reduces both costs and risks.
The total decentralization
Block Chain allows the settlement of trade transactions that are documented on a secure, digital bank statement. Here everything is stored simultaneously on different computers of a decentralized network. It is important to decentralization.
This is to avoid that everyone must have recourse to a central data base, as is the case for example with banks as well as PayPal, an online payment system. The first application of block chain was Bitcoin, a digital international currency, allowed directly from person to person without transaction fees and military standard requirements for encryption of data is sufficient payments.
KPMG, one of the big four international accounting firms, Block Chain compares with the pioneering innovations such as the computer or the Internet. The potential of the block chain technology goes far beyond transactions of crypto currencies like Bitcoin.
The Nasdaq, the US’s second-largest stock exchange, is currently testing the technology. It will revolutionize the settlement between banks and settlement of payments. By payments are handled directly, eliminating the risk of failure, since the transactions take place simultaneously.
Today, trade transactions through brokers, custodian banks, clearing houses and central run depositaries in order to minimize counterparty risk. Often multiple transaction systems are necessary and the involvement of lawyers and accountants.
The use of the block chain technology allows the other hand a direct peer-to-peer transaction without transaction fees and counterparty risks. Property and asset transfer may go in a secure and fast system vonstatten. Possession and sale of securities is fundamentally simplified.
Distribute and win
It is risky to store more than 100,000 Swiss francs cash at a bank , Safe is the money in real estate or securities. Major assets should be spread over several banks. Even larger assets are advantageously distributed among several countries.
Keep the block chain technology and its new applications in mind. Currently, the technology is still in private hands. If an IPO showed high profits are to be expected.