Former Central Bank president Roberto Campos Neto believes that the forces of innovation and technology are about to radically transform the traditional banking system. “The forces we have today, in terms of innovation, will inevitably ‘disrupt’ the traditional banking system as we know today,” he said.
Campos Neto participated this Friday (21) of the event Brazil: Macroeconomic Stability, Climate Change and Social Progressat the University of Miami. The event was sponsored by XP’s private bank.
According to the economist, Five Main Trends They must shape the future of the financial industry, the first being the decline of transactional banks. He explained that historically many banks survived mainly from bank transactions such as payments and transfers. However, with the advancement of instant payments and fintechs, the transactional part of the bank business tends to lose value.
The second point is the growth of global banks and cross-border. According to him, banks will become increasingly global platforms, capable of making cross -border payments more easily and efficiently. This will also contribute to the disruption of the traditional banking model.
The former BC president also emphasized the importance of Open Data (open data) and (Open Financial System). He believes that while some countries are more advanced in this area, there will be global pressure for financial institutions and governments to adopt these practices.
“Open Data greatly reduces information asymmetry,” he explained. This will allow consumers to have greater control over their financial data and can compare products and services from different institutions.
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Another trend mentioned was the money programabilityconcept that involves the creation of programmable digital currencies, such as the (central bank digital currencies) and (stable cryptocurrency). Campos Neto pointed out that some countries are already adopting these technologies, while others are developing cryptocurrency -based platforms such as bitcoin (). “The reality is that we will have this programability of money in one way or another,” he said.
Finally, Campos Neto said that in the future, consumers will not have separate applications for each bank or financial institution. Instead, they will have a single integrated platform where they will be able to access all their financial data, compare products and migrate information between different institutions. “You will be able to get more financial products at a cheaper price,” he said.
