Blockchain and Automation in Financial Banking leave its traces.
Disruptive technologies carry in their guts changes that revolutionize different sectors of society; it is a change that is inherent in the evolution of global economies. Today borders as conceived disappeared; governments try to put brakes, but the reality is that with communication systems and information the barriers disappear, it is understood that the government forms are lagging behind technology. In this line forms to understand the business of investment banking are included.
Undoubtedly, emergency occurs when the technological changes phenomenon arrive and leave their traces. This is what may be going on from the blockchain technology outbreak, services provided by financial institutions such as Commerzbank AG which announced in Thursday this week in progress, that plans to carry out an extensive renovation that includes a reduction in the workforce of nearly 10,000 jobs, this amount represents about 20% of the total, Also the merger of two major subsidiaries will be made and the waiver on dividends payments to shareholders for this year.
The plans make a clear sign that the new CEO, Martin Zielke is determined to reduce the size of the bank. The entity is being monitored by the State, with the persistent ultra-low rates or negative interest rates and weak demand customers regarding the application of credits.
This is a worrying position in financial activity Mr. Zielke also added, “The focus on the main business, abandonment of some business activities and digitization and automation of workflows that will lead to reductions in order to 9.600 worker posts continuous working day,” this is the second largest bank in Germany.
It is mportantly to digitize and automate financial business processes, 2,300 specialists in automation systems will be recruited, staff which was performing manual labor will be dismissed.
The adaptation to the new ways making banking business by Commerzbank will cost 1,100 million euros and an accounting reduction of 700 million euros. Given this situation to adapt to the new realities of the financial banking, in this particular case, it will waive to pay dividends “for the moment” as additional information in May 2015, the bank paid 0.2 euros per share, the first since its state bailout in 2008, 18,000 million euros, initially it was thought and planned to reward its shareholders a dividend payment, but given the situation of the financial business is no longer possible to sustain.
There is a number of facts to take into account. The large financial institutions in the world, look kindly, technology Ledger Accounting Distributed is a way to provide a less costly service for customers and users, mobility and ease to make financial transactions without visiting the bank’s infrastructure, gives new possibilities to the customer. There are great time savings, this new form of customer service is possible with blockchain technology and bitcoin, new professionals will be needed to achieve automation. Therefore, new possibilities for professional developers that can occupy the automation open spaces.
Therefore; dear reader, we recommend you readings related to new opportunities to learn and educate yourself about blockchain technology. There is a promising future, you can leave us your impressions, Thank you.
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