In this latest podcast episode, “Unmasking the Money Maze: Part 1”, Darren Franks chats with Tawanda Chatikobo, Retail and Banking Specialist.
The collapse of regional US Banks
Firstly they discussed the collapse of regional banks in the US. Due to bad bets made on cheap money and the federal government’s intervention, concerns have been raised about a potential reduction in startup funding and risk-taking in the industry. Despite this, the rise of fintechs in Africa and the launch of new platforms like PayShap offer new opportunities in the field.
Ripple / XRP
Another issue discussed in the session was crypto and its utility as a liquid asset. Ripple and XRP have been scrutinized for their security status, but TC believes that the adoption of the ISO 2022 standard will establish crypto’s usefulness as a tool for everyday individuals. Furthermore, there is a potential use case for a regulated cryptocurrency, particularly in the area of cross-border remittance.
Open Banking
Additionally, open banking is an emerging trend that consolidates financial services onto a single platform using APIs that connect different banks and services. While it offers convenience, there are concerns around security and privacy. Trust in handling personal financial data by third-party apps is paramount, and consumers must actively control their data. Despite this, the benefits of open banking are significant, including a seamless experience across platforms, particularly on mobile devices. It also has the potential for financial inclusion for the unbanked and underbanked population. Telcos have the potential to play a role in this, as they are closely intertwined with mobile wallets. Open banking can be a key driver of financial inclusion, particularly on the African continent, where there is a growing move towards digital payments and mobile wallets.
Swift Exit?
Furthermore, the discussion touched upon the next iteration of Swift, which may involve Ripple’s XRP, potentially bringing stability to a highly volatile cryptocurrency rail. However, it remains to be seen whether there is actual value in creating a cryptocurrency within the regulated system.
That’s a wrap for episode 1
While there are concerns and uncertainties, innovative developments such as open banking and regulated cryptocurrency have the potential to bring significant change to the financial sector, prompting organizations to evolve and adapt to stay ahead of the changing landscape. It’s important to remember that the opinions shared during the episode are not financial advice and to conduct thorough research before making any investment decisions.
Tawanda Chatikobo’s Linkedin: https://www.linkedin.com/in/tawandachatikobo/
Darren Franks’ Linkedin: https://www.linkedin.com/in/darrenfranks/
