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