Great executives always think about the long-term game. Where will growth come from in 3- 10 years’ time? Whereas telecom companies are investing in video-on-demand streaming, they are forgetting that winning companies like Amazon, Netflix, Apple, etc are investing a fortune in original content creation. Such companies are looking into the future 20 years ahead – in case of creators reject carrying their content, Netflix can continue to service her membership with her original content – that is the game-changer.
Do you think waiting for customers to take loans shall make the bank win in the near future where blockchain and cryptocurrency technologies are decentralizing everything and fixing one of man’s big challenge: trust – the trust in people and trust in corporations and government entities?
Imagine a day where you don’t need a bank or anyone in the middle to send money to a manufacturer in China or America to buy goods and services, and achieving a 100% confidence that the right supplier received your order with over one million people as witnesses to the transaction?
When it comes to financial services, and the future of competitive advantage, the ball is the ABCD (Artificial Intelligence, Blockchain, Cloud and Data Analytics) of finance or any business you are in. Others are calling it the BASIC (Blockchain, Artificial Intelligence, Security, Internet of Things, and Cloud Computing) approach. Whichever way you look at it, you cannot run away from Blockchain, AI, and Cloud Computing.
Many of my readers have asked for more information about practical blockchain applications. In this article I will share some practical applications and why fighting blockchain and cryptocurrency innovation is not the right thing. You will lose. So why not embrace it early?
By now any reader of this blog probably knows well about blockchain, artificial intelligence, cloud computing, and analytics.
The focus today is on the practical application of these technologies as fuels of innovation.
Enter financial inclusion
Every economy wants secure means to get every member of the population involved in economic activity. The best way to do that is by channeling all transactions through the banking system. This solves the problem of cash-driven economies which are seen as premature and unstable as they facilitate money laundering, corruption, and increasing restrictions when it comes to participating in global business. But also, you could lose your money in a bank. It has happened before where some banks have been taken over by the Central Bank due to capital inadequacy. When a bank has a negative jaw – the rate of growth of operating costs is higher than the rate of growth of operating profits, the bank loses the cash to grow. The result is spending capital and depositor’s money. This trend cannot be allowed to continue. Central banks intervene and close such banks. We call this an issue of trust. You can take your time and look at published financial statements of any bank and you will be left miserable –very high administration costs! Now imagine a system where you don’t need banks for you to do your business?
That is where blockchain technology comes in handy.
To be continued… part 3
Copyright Mustapha B Mugisa, 2020. All rights reserved.