Spar Nord Bank innovates solutions for personal banking. Ole Madsen is the company’s Senior Vice President for Communication and Innovation. He was scheduled as a speaker on BlockchainConferences.io at the Copenhagen Fintech Week earlier this year. Next year, Madsen is scheduled for the 2020 Efma Conference on Banking and Fintech in Berlin. Among the topics at the 2020 Efma will be how the emerging technologies of blockchain, artificial intelligence (AI) and the Internet of Things (IoT) will impact Europe. Other than AI, some Fintech experts believe blockchain can become the most impactful economic innovation of our time.
Why is blockchain so potentially disruptive? And, how might personal banking be specifically changed? The answers lie in the fundamental aspects of this decentralized technology. It is important to discuss decentralization because a growing number of corporations are looking at blockchain for its logistical solutions. For the corporate world, blockchain also promises to improve the internal efficiency of their operations. However, it’s the networking advantages between corporations and their business partners that demonstrate the most powerful potential of blockchain technology.
Corporations and financial institutions take for granted what individuals concerned with personal banking simply do not have access to. Well, that was until the advent of cryptocurrencies. By utilizing decentralized blockchains for peer-to-peer financial solutions, individuals are able to complete secure online transactions. Without cryptocurrencies, this required a network of banks. Spar Nord Bank specializes in personal banking solutions. Ole Madsen is helping to raise awareness and innovate in this area. With Spar Nord Bank, people can leverage blockchain technology in a seamless way.
Current blockchain applications still seem cumbersome to most people. For developers, the technology is seen as amazing. However, the average internet user does not understand what goes into global finance. We take for granted things like one-click purchases on Amazon for products that exist in warehouses around the globe. In reality, Amazon, a network of banks, corporations, and individuals pool their resources to make our current digital economy work. The result is the consolidation of digital assets, information and access points.
Blockchain technology demonstrates how the digital economy can occur without consolidating into a permission system. It prevents hubs that end up being security threats. This is why when there is a security breach, massive amounts of data are compromised. Instead, blockchain institutes a validation mechanism. Anyone who has the hardware and know-how can contribute to a decentralized blockchain system. If a hacker attempts to compromise a blockchain, validators find a discrepancy. Essentially, hackers do not have a single point of failure to attack. And unlike keeping storehouses for copies of data, validation mandates that checks for historical accuracy be done with every addition to the chain.
What more of a powerful way to ensure the future of personal banking than to actively involve individual participants into the security of the system? Instead of service providers, we find entities like Spar Nord Bank as consultants that add value to the new economic environment of individual empowerment.