Blockchain technology will become a new and necessary norm just like the Internet, and will change the way we store and exchange value using digital currencies like Bitcoin.
This is according to information contained in First National Bank's (FNB's) White Paper, which explores the topic of digital disruption and SA's banking industry.
The White Paper, which was unveiled in Sandton this morning, recommends strategic imperatives to ensure that banks are prepared for the wave of digital disruption.
Commenting on the findings in the White Paper, Peter Alkema, FNB Business CIO, said talking about digital disruption in the banking industry can't happen without mentioning blockchain.
"The big question that banks need to ask themselves around the concept of blockchain is whether they are willing to cannibalise existing profit pulls with new lines of services and new ways of doing things to make sure that other people don't come and do that."
He added that FNB has been busy with some collaboration with the other banks.
"The simple fact is this - to get to a blockchain standard across the other banks and SA Reserve Bank - we have to have some collaboration. Once we've got that collaboration and open standard around digital currency in SA, then you can start to differentiate, innovate and compete on products and services that offer new ways of making payments."
According to Alkema the fact that SA banks are talking to each other is encouraging.
"Banks are taking blockchain extremely seriously because the customer's needs are continuously driving banking like any other industry...The more the user experience of processing payments on a blockchain network improves; the more people are going to trust that as an alternative transfer system of value mechanism."
Industry disruption
FNB partnered with the Gordon Institute Business Science to co-author the first edition of its White Paper, which provides thought leadership on the topic of digital disruption for the banking industry in SA.
The White Paper has found that banks are under pressure to fully digitise and disrupt, or risk being disrupted and left behind.
"The trend of disruption is on the increase, with big and small companies trying to innovate and disrupt to stay ahead. Disrupting innovation is nothing new, but we find that smaller fintech companies are disrupting more. This puts huge pressure on industries to come up with solutions that will contribute to the economy," he explained.
Creating an enabling innovative culture with high-tech solutions should be the aim of all companies in the future, Alkema said. "Banks should be more agile and anticipate ways to improve customer's lives through the use of innovative technologies."
Digital disruption is to maximise the digital native user's experience, he noted.
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