The adoption and application of technologies such as blockchain and distributed ledger technologies (DLT), combined with the next iteration of internet technologies in web3, is driving a new wave of development in financial services.
Articles, such as this one in Intelligent CIO Magazine, talk about how Web3 can enable “immutable credit histories” to be built quickly through blockchain.
“While this is an advantage for banks,” it reports, “it is particularly beneficial for the customers whose financial well-being is often hindered by a lack of credit history. Blockchain can serve as a gateway to automate the credit lending and borrowing process, and overall reduce costs for lenders and borrowers alike.”
It goes on to talk about how other advantages, such as a reduced or eliminated need for intermediaries, accelerated settlement processes and enhanced compliance at lower cost, are all inspiring banks to seriously evaluate and experiment with these technologies.
The venerable Forbes too, looks seriously at how the combination of a web3 approach to users having control of their data, combined with the other possibilities “will be utterly transformative for many service-based businesses.”
It outlines a new direction, that of Regenerative Finance (ReFi), to go with traditional finance (TradFi) and decentralised finance (DeFi), is beginning to take off.
ReFi is the concept of an alternative financial system that focuses on promoting and restoring sustainability and resilience along with monetary gains, according to Investopedia, and is often used to describe a cryptocurrency project that uses its platform to invest in sustainability, including environmental, social, and financial stability and growth.
This is an important concept for financial inclusion, according to Blockchain Magazine. It reports that “Web3 has the potential to extend financial services to the unbanked and underbanked populations.”
“With Web3-enabled digital banking,” says Blockchain Magazine, “individuals who lack access to traditional banking services can participate in the global financial ecosystem. All they need is a smartphone and an internet connection to access basic financial services such as savings, loans, and payments.”
To talk about these and other potential developments in financial services, TechBrek on Tuesday 19 September at Ibec in Dublin, will feature Lory Kehoe, chair of Blockchain Ireland, and Joshua Daniel, ONYX Coin Systems, to take a technical and financial view. Joined by panellists from the legal, start-up/SME and government sectors, short focused presentations will be followed by a moderated discussion panel to facilitate audience engagement with the expertise.
Attendance is free but registration is required.