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Former #Barclays' Boss says #Blockchain Could Destroy #Core of #Banking

Barclays' Boss says Blockchain Could Destroy Core of Banking

According to Antony Jenkins the advent of new #technology such as #ArtificialIntelligence and the #blockchain could shake up the fundamental #principles of #banking and challenge the industry.

He believes the #innovation in #finance could eliminate the need for maturity transformation – the process by which short-term deposits, such as current #accounts and instant access #savings, fund long-term loans including #mortgages.

That is a fundamental principle of the industry as banks can offer a low interest rate to savers while charging more to borrowers, profiting from the gap between the two rates. According to an article by the Telegraph.

Jenkins speaking at the Chartered Institute of Accountants for England and Wales said that banks will have to face up the extraordinary changes that are taking place in the coming decades.

In Jenkins opinion the customer led shift towards #online #banking will not serve to undermine #banks. But will likely lead to the closure of branches specially while banks Ageing #ComputerSstems  struggle to keep up the latest technology.

While such CulturalShifts may not be good news to the employees working in the bank branches. As is often the case businesses and organisations will often have to undergo a cultural shift that is led by technological changes in society. It comes down to how these changes are handled in order to counter perceived negative effects.

Read Full Article@telegraph>> 

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