Deutsche Bank president conveys theory that digital wallets may oust bank accounts | finder.com

Deutsche Bank president conveys theory that digital wallets may oust bank accounts

Peter Terlato 23 March 2018 NEWS

On a trip to China, the banking executive witnessed how the retail banking trade is being heavily disrupted.

During a recent conference, Deutsche Bank president Marcus Schenck revealed that there is a hypothesis that traditional bank accounts may be phased out over the next 20 years, to be replaced by digital wallets.

A post by Business Insider UK reports that Schenck told an audience at Bloomberg’s European Capital Markets Forum 2018 that, “there’s a thesis that at some stage in five, ten, fifteen, twenty years – who knows – accounts will disappear and be replaced.”

The retail banking trade is being heavily disrupted. “The week before last I was in China, and saw a company that is producing microchips that are used for bitcoin mining, or any type of blockchain technology,” he said.

“That would be a game changer to what we’re doing,” Schenck said. The co-head of corporate and investment banking suggested that financial firms must step up activities and “have to monitor what’s happening.”

“The vast majority of activities are going down the path of being a more electronic interaction with your client. We have that in our trading business, in foreign exchange (FX)… there are no human beings involved when we do business,” Schenck added.

Given these impending technological developments Schenck advises that those considering working in the banking industry in the future will need to include basic computer coding as part of their wider skills set.

“Being able to code, I think, will be as relevant as being able to speak English,” he said.

Digital wallets offer services that are shaking up the banking world by allowing transfers from one bank account to another, some without fees, and at incredibly high speeds. The name is a bit of a misnomer. In fact, coins are not stored in the wallet at all. Coins do not technically exist as they do not have any physical form (hence the name digital currency). What your wallet can do is connect and analyze the blockchain, which allows you to transfer and receive money to and from other users, and check out your balance.

Dutch-based financial institution Rabobank is developing a digital wallet for the crypto banking environment.

You can learn all about different exchanges, understand exactly how to buy and sell cryptocurrencies, calculate your taxes, discover digital wallets to hold assets and explore a list of all the alternative coins on the market.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Latest cryptocurrency news

Picture: Shutterstock

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Privacy and Cookies Policy and Terms of Use.
Go to site