The Newest History of Banking: The Story of One Disappointment

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In the previous article we have examined basic advantages of the first peer-to-peer cryptobank Datarius that is going to emerge in the early 2019. So it is a great time to move back to the complexity of the commonly-known banking system and find out what were the preconditions and the main reasons for the development of financial technologies.

The history of the banking presumably begins with the appearance of the first moneylanders, who had been running their business in ancient Babylon since the 7th century BC. According to the history of this region, they had managed to put in circulation first banknotes called “hudu”. Starting with that moment, the popularity of financial intermediaries had been rapidly growing throughout the ages until the invention of the modern technologies, Blockchain in particular, which provided customers with new opportunities of financial management.

Needless to say that the long-established system of banks` participation in commodity-money relations can no longer meet the specifications of today’s economy. It relies mostly on the outdated rules of customer relationship management and survives only at the expense of clients` involuntary contributions, so that mediators could benefit from their sick participation in financial circulation. Everyone here, more or less, has been wondering “Why do I even have to pay for the transaction between my own accounts to someone else, no matter is it a natural or legal person?” And that discontent does not refer to traditional national and private banks exclusively, it highlights obvious injustice in the attitude of the dominant companies specialized in money transfer to their clients` community. Recalling my personal experience in dealing with one of the most trustworthy Spanish banks Santander, I must warn you that, despite some marginal guarantees, you can easily lose your money, as was my case with the transmission of monthly income. when I did not have an opportunity to trace the money sent to deposit and eventually proved myself a loser.    

The conservative regulations of cash flows within digitized circulatory system place an unreasonable burden on users, forcing them to seek for a better solution in issues related to financial services. Of particular concern in this regard is choosing a unified system based on up-to-date technologies and capable of continuous renewal and adaptation to recent requirements. Such a system should provide users with reliable information about their private money transfers and ensure that every customer is treated properly in comparison with the others, and these are the points that Datarius plans to implement best.

Although people have grown used to the services of prestigious traditional banking, the latter are generally considered as impractical, unreliable and time-consuming. In order to solve that dissatisfaction Datarius offers client community client-oriented services founded on customers’ personal preferences, which will not bother users with excessive proposals and interference with staff.

Deeming of prior importance safety of individual`s investments, Datarius is going to serve customers as a system operating on the basis of decentralization, and this, in turn, implies complete absence of control over the platform on the part of a government, since it does not fall under any jurisdiction. Therefore, the cryptobank is aimed at operating under the auspices of equality, meaning that every customer shall be provided with equal opportunities to realize his ambitions. The full discretion to enjoy advantages of peer-to-peer banking enables users to avoid additional taxes and transfer their investments without minimal losses and it on top of everything else involves lack of imposed terms of services` usage. In so doing, the cryptobank will provide its clients to choose their favourable interest rates.

We should also note that traditional banking system rules out the possibility of direct contact between the parties to a transaction, hence Datarius will include communication platform bringing users together for the better implementation of money transfers, and this process will not necessarily require assistance of a risk-manager, although this service shall be available to the clients` community online.

It is regrettable but traditional banking has been made obsolete by technological developments. The relationship between the intermediaries and clients have become too costly for the latter, that is why Datarius is intended to remove the deep-rooted weaknesses of the outdone financial system and reverse its managerial gaps.