Q: Can't the big banks that have huge money and large developer teams just develop the same solution? Can't they win the race?

The situation usually is that the most famous and successful projects do not start in large corporations, but rather in garages and university campuses. Like PayPal, Apple, Microsoft, Facebook or Bitcoin. In Russia these are Yandex and Kaspersky.

So where are the successful projects of the market monsters? Unfortunately, the bureaucratic and heavily regulated structures are not suitable for an innovation breakthrough. Their destiny is to buy the advanced technologies in the market, or to slowly sink into oblivion.

And their teams of thousands of employees supported by generous financing won't help the existing large corporations. So, it is not quite possible to reach and forereach the new bright and savvy market players.

Furthermore, the kids leading the change have become smarter and more prudent. They protect their innovations with patents, thereby driving back their pursuers.

But is the situation in the market for these big financial companies so hopeless? Of course not. They have their great advantage, which is their huge clientele. And now they need to cover this clientele with innovative technologies. The one who does this faster than other market players will definitely become the biggest winner.

It would seem that an obvious strategy to do your best and try and switch from obsolete technologies to blockchain technology is, unfortunately, is not very real.

But the thing is that the banks have huge obsolete IT-platforms being developed for decades. And if we completely switch to the new technology, engaging all its innovation capacity, then we have to place the blockchain-platform in the very heart of the bank's operations. In the place most holy, the CBS (core banking system). For an existing bank while it is fully functional and active with millions of clients onboard this is extremely difficult (in fact, impossible) to plan and implement such an in-depth system migration.

While the banks are modernized through this Cyclopic work, it will just take a while for the new remittance services network on blockchain to grow from scratch. They will surpass the existing banking systems with speed, security, and will have very low costs.

The most effective strategy would be to use the market players' advantages and bring them together in one project. This could be done through cooperation (including on the equity participation level) of the existing banks with technologically advanced fintech startups.

State-of-the-art automatic multi-currency systems with advanced APIs (Application Programming Interfaces) developed using blockchain and operating through various channels are the ideal partners for the banks. Such a new IT-platform could operate alongside the existing one.

Using technologies not requiring manual work, and innovations of fintech startups the bank could offer its customers historically low fees for these transactions, and therefore, to make a difference in the market.

An alliance of banks and fintech startups grants each participant access to the other party's advantages. And the main thing is that they will not have to spend years of development to get such technologies. The banks do have a possibility to enter the market with the cutting-edge technologies right now.

We may all soon witness the smart-banking triumph, and the rigid and close-minded banks slowly leaving the financial services arena.