Both the legacy and tech-based financial systems are insufficiently interoperational to reap the benefits of the flourishing fintech industry. ARYZE is fixing this problem by creating a financial platform where legacy, fintech and blockchain based financial service providers can inter-and-co-operate, unifying the value chain.
The previous article in this series explored the limitations of physical cash and current digital money solutions; the banking systems through which that money flows are similarly inefficient. Much of the banking technology currently operating has been in place for over thirty years, a fact which has several consequences for the financial industry. These legacy systems are siloed, inflexible, and have outdated security standards, and scaling and updating them poses a growing challenge.
Legacy systems
Outdated banking systems make it difficult to save and manage money. Accessing an account is a slow and analog process, and it is extremely difficult to transact money between different banks, especially across borders. Within these analog systems, only basic financial services are provided to the most profitable markets, meaning that niche financial needs and less lucrative groups are underserved due to these systems. Customers are limited to the financial services provided by banks, leaving little room for innovation.
New tech-based systems
The proliferation of fintech has resulted in more niche consumer needs being met, as fintechs such as TMRW Bank, Tomorrow Bank and Insha provide services to groups previously underserved. With digital banks such as Revolut, Monzo and Starling it is significantly easier to open an account, which can be done without ever leaving your home. Fintechs make it easier to interoperate between financial services providers, creating a more streamlined transaction experience. For example, money transfer systems like MobilePay and Venmo enable easy payments between individuals with different banks.
However, these innovations are not as user friendly as they could be, because they each exist within siloed infrastructures and individual user interfaces. In the case of MobilePay and Venmo, individuals without Danish or American phone numbers cannot access or transact with these systems, rendering them of limited utility in our globalised world. The benefits of services tailored to specific, niche user needs are limited by the fact that each service and app exist independently, meaning users cannot access these services in a streamlined, user-friendly manner. Users are limited to the services provided by these fintechs, without any simple way to develop their own add-ons or tailor their services, rendering them less effective than they could be. As ARYZE CEO Jack Nikogosian says:
There is so much fragmented tech out there because everyone is operating their own silo.
Without being able to operate in between digital tech solutions, their benefits are lost as soon as you try to operate outside of those systems; this makes no sense in such a globalised world. The fintech industry needs to be united both horizontally and vertically.
ARYZE is streamlining the payments industry, creating a platform to host and facilitate interoperation between financial service providers. Our RYZEnet system is interoperable with legacy systems, tech-based services and blockchains alike.
ARYZE’s RYZEnet platform is interoperable with other tech-based financial service providers through MAMA, or Multi-Asset Modular App. This modular payment app will not only offer features like trading, spending, and saving money – it will also allow users to integrate “modules,” offered either by ARYZE or by third-party developers with an ARYZE developer license.
Not only will ARYZE be capable of interoperating with all other digital financial services platforms, we will be fully interoperable with any desired third-part blockchains. Digital Cash will be available on exchanges where developers can autonomously purchase and programme real money like they can with other cryptocurrencies. As Nikogosian says,
When our currency works outside of these silos, say, on ethereum, there is so much more that can be done and so many more systems that exist, and those would naturally outphase the existing systems.
By offering almost entirely free transactions, multi-currency holdings, and an interoperable banking platform that can interact with external banking systems and blockchains alike, ARYZE is creating a unifying financial platform. This will not only be of great benefit for our corporate and individual end-users, but will also address another important issue, namely Anti-Money Laundering. To find out more about how ARYZE’s efforts towards a streamlined industry help improve AML practices, please await our next article.
To learn more about ARYZE, check out the other articles of these series on our blog, or visit our website.