The Future of Financial Services

The ease of making financial transactions and financial services in general, had first been revolutionised when telegraph companies introduced wire transfers. But with the coming of new age financial services like Bitcoin and Ripple, it is the time we address the question of what the future holds for the financial services of the world.


Traditional Wire Transfers

Let us begin by first taking a look at how things have been going on for these past 150 years since wire transfers were first introduced. Transferring funds using a wire transfer method via a bank is not a single step process but a multi-step process. It is like this:

The sender approaches his or her bank and orders the transfer of funds to an account. Unique codes like BIC and IBAN codes are provided to the bank by the sender so that the bank knows exactly where the funds need to be transferred.

The sender’s bank contacts the receiver’s bank by sending a message through a security system, such as Fedwire or SWIFT, signalling it that a transfer needs to be made. The receiver’s bank receives this message, which includes settlement instructions as well, and then asks the sender’s bank to transfer the amount specified in the message.

The sender’s bank now transfers the amount. This is not done in one go but bit by bit, so it can take anywhere from a few hours to a couple of days for the entire sum to be transferred.

To make the transfer, the two banks must have a reciprocal account with one another. If that is not the case, the transfer is made through a correspondent bank that holds such an account.
As one can see, this form of transfer relies overly on a mediator, takes more time than it should, and can …

Reasons Why Online Bill Payment Is a Must

There was a time when people did not feel at ease with paying their bills online. Most of them find it hard to trust the security of transacting on the web, and thought they have no control over their money with online bill payment. When you submit your checking account details to your insurance company or utilities provider, there is a risk that you could be overbilled or that your identity could get stolen. It seemed safer to write checks and stamp envelopes, which is why many people stick to that practice.

However, this is no longer the case. More individuals are paying almost all bills you can imagine online – like credit cards, loans, mortgages, rent, tuition and utilities, to name a few.

Why then should you choose to pay your bills over the Internet? As a start, you will be able to save on time as well as costs of postage and late payment charges. Also, paying online is safer than through snail-mail. Your personal details are more prone to risks like theft when on print and in motion via the postal system. When you pay your bills with your credit card, it is easier to monitor your finances and, furthermore, you can save airline travel miles as well as win cash-based rewards.

There are three simple ways to make an online bill payment: via your bank, on the website of the biller or through a third-party. Each comes with pros and cons so the method you decide on depends on your personal choice. There are good reasons why you should move forward and pay your bills online.

Whenever online bill payment comes to mind, you might think it involves setting up automated drafts from your bank account to pay your bills. However, more and more people are

The Future of Currency Is Digital

Would we be better off without paper money and coin? Some say yes, and some say no and the debate rages on. Government tax collectors would prefer only electronic or digital money – it’s easier to control and easier to keep taxpayers honest – but are those gains worth the drawbacks? I mean what’s wrong with cash – you can spend it anywhere, you can pay your babysitter, go to a garage sale, or stop at a lemonade stand – all of which are part of our underground economy by definition and harmless uses of transferring money.

Then there are the illegal things, no one uses digital money because it leaves a trace, so you cannot use it to buy things you are not allowed to buy or that someone else is not allowed to sell. Does it thus, make sense to get rid of the money that allows illegal transactions, shut down the entire underground economy and if we do, will our society and civilization be better or worse off for that solution? Let’s discuss this shall we?

Yes, a digital currency would be similar to regular currency and really we are almost there already anyway. If we go to “digital units” and change the paradigm to cover the needs of people who contribute who are not rewarded fairly now, then we will get more of what we reward, as is the famous axiom. A technocrat would enjoy this conversation and the thought of micro-managing the exact worth of every job, but technocrats are not so good at considering their own created unforeseen consequences as they pave the road to hell.

The reason humans use money now is simply because things and choices are more complicated than they were in the past when our species were only hunters, gatherers …