The Programmable Bank

Blockchain. APIs. Smart Contracts. Microservices.

Buzzwords that float around every meeting room in every bank in every city. But where does it really lead?

With app-based wallets (a product itself so often ignored by banks for being a simple no-frills current account or savings account) popping up almost everywhere, a ‘small’ fintechs encroaching on a bank’s traditional cash cows, it is obvious – banking is leaving the bank.

So how can banks stay relevant in the era of self-made selfie-stars and Michelin-award hawker stalls? Perhaps one way is through on-demand, API-driven product manufacturing houses.

How is this different from today’s banks? Banks traditionally create (manufactures, in financial parlance) products that it then sells (distributes) through its own channels, like branches, ATMs, apps, and websites. But if you break-apart this design, a bank could focus on making world-class products, or world-class delivery. Focus and specialisation.

Enter the Programmable Bank. So the Programmable Bank would manufacture products on-demand, highly customised to the person, delivered through APIs. The Programmable Bank relies on others to capture mindshare and attention-spans to sell the product, but that’s alright because the Programmable Bank’s cost basis is extremely low. In fact, the Programmable Bank leads the pack in the race to zero – zero cost, zero time.

In fact, the Programmable Bank could enable new concepts of fundamental human rights – the right to fair finance. Only an ultra-low-cost product manufacturer could give basic financing to every person at birth.

The banks of tomorrow will be very, very different from what we see today. Its a wild future!

Bonus: Root Bank. You’re welcome.

Featured Image: I couldn’t find a name, so if it’s yours drop a note.

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