Historically, the banks were always working on maintaining a certain level of trust with the people; this was a key element considering they were handling the community's money. But as technology has evolved and people do their banking online, this old way of doing things has gone the way of the dinosaur.
Always a Need for Trust
What is still true is that banks need to build and keep that same sense of trust, something that blockchain has made difficult for major financial institutions. For example, when most people are in difficult financial situations, only 28% turn to the banks for help, a number most bankers would like to see increase.
Banks are here to perform an essential social function, which has become somewhat forgotten primarily due to the rapid pace of technological advancements. According to the previously mentioned Accenture report, when people have to deal with serious financial difficulties, only 28% of them turn to a bank for financial advice.
Many banks have been battling these tides of change by ensuring that their customers and representatives appear warm, kind, and trustworthy. This trust exists because the banks focus on advising their clients by sharing honest and open information using big data, aiming to build a stronger customer-centric relationship.
The anxiety most of us feel about the pandemic has increased the time we spend online banking and conducting digital transactions. Since the start of the pandemic, millions of people have been tricked, cheated, and taken to the cleaners by people calling to say they work for a specific bank. It is a perfect opportunity for those looking to scam people out of their hard-earned money.
The rise of COVID-19 has made fraud education a top priority for many banks, especially for older adults. It's no longer good enough to send emails to clients with some steps and guides on how to avoid scams, and customers need to be taught and adequately taught everything about fraud and scams.
My Two Cents
The power of blockchain can simultaneously help streamline an ever-complicating banking system while acting as an impenetrable layer of security. As technology continues to change how banking works, financial institutions need to build and maintain trust with their clients in a proactive way, and blockchain can be the tool that makes the difference.
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