The biggest problem with major and traditional banks is that they always seek innovation in the current policies and tactics. What they fail to notice is that people are no longer accustomed to such policies and tactics. People want someone that is more beneficial and favorable for them than being beneficial only for the providers.
This is where the cryptocurrency and fintech industry has set up new rules, boundaries, and expectations for people. These industries have been built up with the idea of changing the traditional ways of financing.
Over the course of time, more and more people have started shifting towards these platforms. It is just a matter of time when the entire world will be taken over by the crypto-fintech finance system. The main reason for the success of these platforms is that they are way more transparent than the traditional finance system.
These platforms offer people more benefits and the freedom that they need and most importantly, involve on secret policies.
On the other hand, traditional banks still seem reluctant in changing their finance infrastructure. It has been observed that when it comes to the banks adopting new technology, they make superficial changes.
Most of the time, the banks work on introducing new hardware that is easier to use than the previous versions. If they go too far then they would introduce new and easier ways of processing old finance-related tasks.
What the banks are lacking is thinking out of the box as they seem considerate only of the interface but not the system itself. For banks, it is extremely critical to look into their back end policies and systems. There is an extreme need of changing the back-end of banks and the financial infrastructure that has remained untouched.
Even today, there are banks that are stuck with old-style programs such as COBOL that were used by all banks decades ago.
As far as adopting new technologies and maneuvers is considered, the traditional banks are still way too far from it. One of the most alarming things about traditional banks is that they do not even do innovation on their own.
It has been noticed on many occasions that when it is time to innovate, the traditional banks pick ideas from teams that have already covered the innovation part.
When these banks need to have innovation, they go with a different kind of approach that involves the input of journalists. These giants go on media announcing that they are looking to bring innovation to their technology. That is when numerous firms start coming up with ideas and innovations. Then, these banks add such teams and firms into their conglomerates and use their innovation.
This is the reason why traditional banks have to change the way they think and look for innovation. The banks will have to start from their thinking and then change the infrastructure entirely.