This article was first published on Blog – Civic Technologies, Inc.
Banks hold a significant amount of power in today’s world. In 2015, following the recession, the five largest banks in the US controlled nearly 45% of the industry’s total assets. Today, typical consumers need bank approval for everything from getting a car loan to making everyday transactions.
At the same time, today’s banking system sometimes overlooks people in the modern economy: a recent survey by the FDIC found that 25% of American households are unbanked or underbanked; worldwide, that number rises to 69% of households. We see a need within the marketplace to embrace the power of decentralized finance and empower users to take greater control of their identity and finances.
Consumer data is also insecure when held by a large central authority. Just this year, Capital One faced a hacker attack that exposed the personal data of over 100 million people and included 140,000 stolen Social Security numbers and 80,000 bank account numbers in the process. Keeping your personal information in one centrally-held location significantly increases your risk; but despite this, users are asked to hand over their identity daily.
Financial institutions today are challenged with meeting consumers’ high expectations for fast and convenient digital banking processes, while also needing to mitigate fraud and comply with increasingly stringent regulatory requirements, as explained in Payments Journal. As such, banks are thinking more carefully than ever about compliant storage of personally identifiable information (PII) as they release more convenient financial products to busy, on-the-go customers.
There’s also a better way to make payments. It’s clear that banks have room to grow when it comes to better servicing consumers: there are inefficiencies in the way payments are made, and many worthy consumers are left without access to loans. Decentralized finance can alleviate the pain point waiting for a corporate entity ...
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Blog – Civic Technologies, Inc.