Currently, technologies like Blockchain are presaging quite a revolution with their existence by putting a question mark on the BFS Industrys traditional economic value accessible. The restructuring of Blockchain has created a profound impact on the conventional business models by bringing in the concept of smart contracts, peer-to-peer lending, and digital payments. This, in return, has eradicated the intermediaries and has helped in revving up the underlying processes. Consequently, it is expected that the Blockchain will save the annual operating costs by around USD 20 Billion for the BFS industry, thus indicating a rise in the number of banks to deploy the technology in commercial production.
Additionally, cryptocurrencies such as Bitcoin, Ethereum, and Ripple are gradually gaining traction, catechising the requirement of physical cash itself. In the given scenario, assets once considered the core have lost the stature and control they once held and served to protect. It has given rise to new regulations such as Open APIs and PSD II that affirms the process of laying down the road for the rebirth of the industry.
In near future, the digitisation of money is soon to alter the consumer relationship with money forever to such an extent that there are high chances for the extinction of the physical cash. In case this sounds like a far-fetched dream to anyone, let us bring to light that in the last 30 years, more than 600 currencies have already gone extinct or have been replaced by digital currencies. It applies to the major currencies as well. Moreover, the digital currency has been introduced in the majority of the countries such as Europe (digital euro).
In short, peoples trust and loyalty to traditional forms of payment and banks have now been replaced with digital money. Moreover, UPIs in place has given rise to a whole new host of new services that are established to challenge conventional finance providers.