The traditional banking system has undergone vast development in the last few decades. From being remote organizations to becoming connected via technology, the financial institutions have experienced multiple changes. Despite all the digitalization and gradual reduction of formalities, banks are still far from developing accessibility and secured facilities. This has resulted in the need for an alternative banking system.
The banks have been trying hard to facilitate customers with the ease of banking anywhere, anytime. Creating a financial alternative to traditional banking was possible with the development of the Internet. But, it wasn’t until 2004 that a peer to peer lending system was developed.
LALA World has come up with multiple solutions that would prove to be alternatives to the existing services offered by traditional banks. It intends to provide payments services, peer to peer lending, micro-finance & remittance services, to name a few. The services are based on the creation of an immutable digital identity and seek to digitalize paperwork.
With the introduction of Blockchain, the possibility of having a better replacement of traditional banking system became feasible. Such is the impact of Blockchain that the traditional banks are trying to adopt it. A World Economic Forum report suggests that more than 15% banks across the world would adapt to Blockchain by 2018. This testifies its impact on this sector and the apprehensions of conventional players who are afraid to lose out to the alternative banking players.
“In the simplest sense, the key to the performance of any traditional commercial bank … is the profitability of the loans it makes.”
Robert Wilmers, chairman and CEO of M&T Bank
LALA Id, for example, is a feature of LALA World’s global financial ecosystem that creates a unique digital identity for the users; the Id can be used to avail different financial services. LALA Wallet which is the primary product of LALA world is supported by LALA Id. LALA Wallet offers services such as bill payments, lending, and remittance.
We have been featured in Blockonomi – a fast growing blog on the Blockchain Technology, in its Nov 2017 edition: https://blockonomi.com/lala-world/
The ultimate objective of the LALA World is the financial inclusion of the underbanked. Our services would save them from high transaction costs and delays in transfers. The availability of quick loans in lieu of liquid assets is another added advantage of the financial ecosystem LALA World is building. People are shifting towards these alternative banking solutions as they are based on advanced technologies like Blockchain and offer better customer services.
The following features of Blockchain-based alternative banking are clear indicators of its huge success in the future:
- Faster transactions: Since Blockchain helps in transfers of funds through mere ledger entries, alternative banking based on this technology is much faster in comparison to the traditional banking. This technology allows inter-state fund transfer verification within minutes in contrast to the conventional banking process which takes 1-3 days.
- Improved security: The security of the transactions recorded on the shared ledger is ensured in the following ways:
First, since the transactions happen at a very fast pace, there is very less time for anyone to fiddle with the same and divert the money to some other account.
Secondly, the entries in the ledger, once verified, become part of a linked and irrefutable chronological history.
- Improved Data Quality: In traditional banking systems, it is very difficult to regulate who’s making what changes as everyone has the access to the information and can make changes without any intimation to other people in the system, unlike alternative banking. There is an entire industry devoted to data management for financial institutions, still, challenges persist. This is where Blockchain – based alternative banking comes in.
Present day Blockchain Technology is capable of keeping multiple copies of data that can be accessed and changed only as per a set of existing rules. The true value of the shared ledger technology is the fact that it is a single source of truth.
Blockchain is exactly the kind of technology that will enable LALA World to help migrants across the globe. We are extremely confident that we would be able to make a difference in the lives of the people worldwide.