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Fintech Expert Frank Schwab: Bitcoin Here To Stay, Banks Are Doomed

Last Updated March 4, 2021 4:49 PM
Lester Coleman
Last Updated March 4, 2021 4:49 PM

Frank Schwab, a founder of the Fintech Forum in Germany, believes that bitcoin has proven itself, and banks could eventually become obsolete, according to an interview with Christoffer De Geer, marketing manager at XBT Provider, in The Street .

Frank Schwab
Frank Schwab

Schwab’s association with fintech began in 2012 when he came across a Berlin-based startup called Mambu which develops a cloud-based core system for microloans. Schwab was impressed with the IT architecture for the business model. He then learned about fintech activities in New York and London and decided to launch the FinTech Forum in Germany.

Schwab considers bitcoin to be the first globally relevant virtual currency that does not need the banking system. “It is a first of its kind. And: here to say,” he said.

Schwab said he does not plan to invest in bitcoin directly since he does not speculate in currencies, but he does invest in companies involved with blockchain technology.

Fintech And Financial Services

Schwab thinks fintech will make financial services more convenient, less expensive and more invisible as it becomes part of daily life. He compares fintech to the Uber payment process, which is something that happens without people giving it much thought.

Banks will either respond to fintech or they will disappear, he said. Some banks will benefit from fintech while others will simply disappear.

Alternative banking services not involving banks will gain a significant share of banking services, which Schwab thinks will be finetch’s most radical change. He believes this change will take another 10 to 20 years.

Also read: Ex Barclays’ Chief: Fintech Will Significantly Disrupt Banking Sector

‘Huge Opportunities’ Unfolding

There are “huge opportunities” in fintech for those who “get it right,” he says, from a user, business model and technology point of view.

He has no negative thoughts about the fintech industry, but he bemoans the fact that many fintech companies will perish early. This is true for all industries, not just fintech.

Images from Shutterstock and LinkedIn.