Finance - The future of financial services

The future of financial services

Revolutionized the ease of conducting financial transactions and financial services in general for the first time when telegraph companies provided bank transfers. But with the arrival of new era financial services such as Bitcoin and Ripple, this is the moment when we tackle the future of financial services in the world.
Traditional bank transfers
Let's start by taking a look at how things were over the past 150 years since the start of electronic conversion for the first time. The process of transfer of funds through bank transfer through the Bank is not a process of one step, but it is a multi-step process. It looks like this:
• The sender approaches his bank and requests transfer of funds to an account. The sender provides the bank with unique codes such as BIC and IBAN so the bank knows exactly where the funds should be transferred.

• The sender bank connects to the recipient's bank by sending a message through a security system, such as Fedwire or SWIFT, indicating that the transfer must be made. The recipient bank receives this message, which also includes settlement instructions, and then asks the sender's bank to transfer the amount specified in the message.

• The sender's bank now transfers the amount. Not all of this is done at one time, but little by little, so it may take from a few hours to two days for the total amount to be converted.

• To make a transfer, the two banks must have a mutual account with each other. If not, the transfer is made through a correspondent bank that has this account.
As you can see, this type of conversion is overly mediocre, takes too much time, and may be costly, since banks charge fees for their services. The availability of coins distributed in the form of KFU is a viable alternative to this process.

Decentralized currencies
What distinguishes services like Bitcoin from traditional services is that they do not rely on a central broker, but operate using encryption protocols. Therefore, the process is faster, simpler and more efficient. The system is also completely transparent to end-users, while traditional systems are susceptible to fraud because of the complex process involved.
However, there is a drawback to this as well. With services like Bitcoin, it is easy to track a transaction until you create a value for each unit.
The solution? Common floor
More and more people choose services like Bitcoin and peer-to-peer transfers on mobile devices, where a network operator can help users simply transfer money by sending an SMS. While they are more efficient, they are far from universal acceptance because there are many who do not yet have bank accounts, as well as limited user identification in these services.
What might be ideal for all is whether banks can take advantage of decentralized currency potentials and enforce source code for services such as Ripple on its current system to form a combination of the two. I will kill two birds with one stone like:
1. Decentralized currency systems provide more efficient transfers.

2. Banking systems guarantee only registered users access to the service, eliminating the possibility of wrong play.
conclusion
The world has come a long way since the last time a local financial services system was introduced. Certainly, there is a great need to improve this traditional service and have shown them decentralized currencies like Bitcoin them the way.
While these two services are different and cybersecurity measures are adequate with their own shortcomings, if applied together, they can perfectly fit the gaps of others and create a system that would revolutionize the financial services system once again.

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