Intelligent CIO APAC Issue 40 | Page 73

WEB3 IS SET TO REVOLUTIONIZE THE BANKING ECOSYSTEM IN DUE COURSE , BRINGING FORWARD SIGNIFICANT INNOVATIONS THAT WILL RESHAPE THE NATURE OF FINANCE .
INDUSTRY WATCH

WEB3 IS SET TO REVOLUTIONIZE THE BANKING ECOSYSTEM IN DUE COURSE , BRINGING FORWARD SIGNIFICANT INNOVATIONS THAT WILL RESHAPE THE NATURE OF FINANCE .

The potential of Web3 technologies presents a compelling opportunity for Australian banks and financial services to explore .

These emerging technologies are expected to have a lasting impact and potentially offer transformational possibilities .
Web as a diverse array of digital offerings and services that is facilitated by a decentralized infrastructure .
This framework enables greater trust and privacy since a decentralized infrastructure gives participants ownership of their data while ensuring that their data is immutable and impervious to alterations .
So , what is Web3 and what impact can this technology have ? While there ’ s plenty of information about Web3 out there , there ’ s also considerable confusion about what it means .
The definitions of the term may vary but it is understood that Web3 focuses on decentralisation ( supporting decentralized finance i . e . DeFi ), distributed ledger technologies ( such as Blockchain ) and tokens ( which can generate smart contracts ).
All of these have enormous potential within financial services . Essentially , Web3 envisions the
Through Web3 , transactions such as payments are permanently recorded , ensuring that everyone receives a real-time update of market developments .
Trends to Watch
Survey findings confirm that banks are investing in utilizing Web3 as a way to enhance innovation and efficiency . Nearly two-thirds ( 60 %) of executives predict that Web3 will disrupt traditional banking models , with the survey highlighting how banks are well-positioned to seize new opportunities based on their track record of regulatory compliance , KYC
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