Barclays former CEO: Banks in the block chain innovation in the wind

nnnAntony Jenkins, former chief executive of Barclays Bank, said in an interview with CNBC that banks have lagged behind technology giants in the development of new technologies such as block chains. He stressed the advantages and great potential of the block chain technology, pointing out that if banks can not keep pace with the rapid development of financial technology, they will face a great crisis of survival.n
nnTranslated by: Inan
nAntony Jenkins, former chief executive of Barclays Bank, warned once again that big banks may be in the midst of competition in emerging financial technologies such as block chains.n
nAntony Jenkins led Barclays to a turbulent period from 2012 to 2015, and he told CNBC that although banks were always innovating, they had difficulties in transforming their outsiders.n
nJenkins said in an interview with CNBC on August 24:n
nn”I think we see banks in all industries, especially in the financial services industry, that they are very good at innovation, they invest a lot of resources, but this transformation is much more difficult for them.”n
nnHe said large technology companies and financial technology start-up companies are leading the field.n
nn”A little attention will be made to find that all the interesting transformation work is carried out in areas other than large banks, and these banks are beginning to realize that.”n
nnOn August 22, a report by the World Economic Forum found that banks were lagging behind technology giants in developing technologies such as cloud computing, artificial intelligence and large data analysis. The study also concluded that financial technology companies failed to subvert the competitive landscape of financial services in the way they wanted.n
nThe block chain eliminates the need for middlemenn
nThe block chain records the digital books of the transaction through a distributed network, eliminating the need for intermediaries to supervise. The most common use is to carry out transactions such as royal currency.n
nJenkins said the banking system was being suppressed in this area because of the need for central authority.n
nHe said in CNBC’s “Squawk Box” program:n
nn”If the world only has you and me, you have money and I need money, then we can do it directly, but there are billions of people around the world, so we need the banking system to do it.”n
nn”But what the banking system is doing is to have a central focus on solving risk, and when you focus on solving the risk, you have to have a lot of capital support, which creates friction in the system.”n
nJenkins said that although the block chain was originally only marginal technology, the mainstream financial services ignored, but its real potential is about to be realized.n
nHe said:n
nn”I think it’s like all the technological developments we see.” At first, it’s only on the brink of life, and most of the existing participants (in this case, the banks) tend to ignore it and want it to disappear. And then they began to pay attention to it and start some related experiments.n
n”But at the same time, they really learn the relevant knowledge.”n
nnOn August 22, IBM announced that it would allow food giants such as Nestlé, Unilever and Wal-Mart to use its chain-chain network to track information about food sources, conditions and diversion.n
nIt takes only a few minutes to issue a loann
nJenkins also pointed out that distributed book technology can make the payment of the payment in a few minutes to complete.n
nHe said:n
nn”Later, people may see that the mortgage is only ten minutes, and the letter of credit is only two minutes.”n
n”Although we have not yet achieved this scenario, but it is only five years, ten years or fifteen years, it will save the bank system a lot of cost – basically caused by the low efficiency.n
nnHe pointed out in June that banks could face their “Kodak crisis” if they could not keep up with the pace of fast-growing financial technology, or repeat the mistakes of Blockbuster, the disc rental company.n
nHe said that the opportunities brought about by digital books can increase efficiency and save the cost of $ 80 billion to $ 110 billion.n
nJenkins was expelled from Barclays Bank in 2015. That year, he said in an interview with the BBC, said he was fired “surprised.”n
nIn this interview, he declined to comment more on the matter.n
nHis 10x Future Technologies, a financial technology startup, is building a digital banking platform for a number of customers, including Virgin Money, founded by billionaire Richard Branson in 1995.n
nHe told CNBC:n
nn”We are building a platform now, and next year we will be rolling out the platform with our first customer, Virgin Finance, and we are working with other banks and customers.”n

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