By Rarzack Olaegbe
Honda has released the rebranded Honda Africa Twin model. It is a mix of easy handling and silky-smooth transmission. Some selling points are the conservative use of electronics and basic traction control. It has a reworked chassis. It is lighter. It is nimbler. It is sleeker.
The 2015-2019 editions cannot compare with this new release. Its LED headlights adapt to ambient light. The new makeover Honda has lean-sensitive traction, a cornering auto-braking system (ABS), as well as wheel and rear-wheel torque control algorithms. However, this makeover Honda is not a car. It is a power bike.
On the one hand
Blockchain may herald a similar makeover for the fintech sector. As one of the most regulated industries in the world, fintech would benefit from new applications like blockchain. Fast and global with low processing fees, research shows that blockchain can change the face of financial transactions worldwide. It can boost the global economy to $1.76 trillion over the next decade with the two top nations, China ($440bn) and the USA ($407bn), benefiting the most from the technology.
The financial industry has the largest distribution of blockchain market value. With a 29.7% share, the IDC report shows that the manufacturing industry has 11.4%. The professional services sector has 6.6%. The increasing adopters of blockchain wallets will match the rush by investors to add to the reach of blockchain services. This wallet stands at 40 million worldwide (Statista, 2021). It was 11 million in 2016.
Meanwhile, PwC suggests that in the year 2025 economies worldwide will adopt blockchain technologies. Payments, financial services, and identity management will benefit from blockchain. With bank revenues exceeding the incomes of nations, our banks will embrace AI.
Artificial intelligence is attractive now. That is why some banks are fine-tuning their AI solution strategies. This will drive the wider adoption of AI in the sector further. In 2030, research shows AI will cut banks operating costs by 22%. That is enough motivation for the banks to join the bank wagon.
Because AI will help to nip the growing incidence of cybercrimes and identity theft in the bud banks, fintech startups and incumbents may incorporate it into their operations.
On the other hand
Contactless payment is here. Some banks have incorporated contactless payments through the ATM. ATMs advancement is accessible. Few banks have deployed this. Bank customers can have biometric confirmation. Maybe before 2024, we will have iris acknowledgement via the ATM. Qatar National Bank offers this innovation. This will end ATM hacks.
In the short term
These applications will makeover the fintech sector.
Ok. Will blockchain applications help reduce the long queue at ATMs?
No.
Will the contactless app give me cash without my presence?
No.
What is the makeover then?
Blockchain, artificial intelligence, and machine learning support Fintech. These technologies offer speed and security. Each technology makes Fintech sleeker. Like the Honda new release.
