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John Bullard

John Bullard

Global Ambassador at BullardCo
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Bio Ambassador for global trust and electronic identity Career History Banking, Technology- and plenty of Diplomacy....

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Bank or IT? - You Decide!

  It depends what you mean by a bank.... there is a way of looking at the business of banking as being Risk Management/Mitigation/ Intermediation (pick any one but they are all about Risk/Liability etc) in 3 distinct areas: namely i) Credit Risk (being the acceptance of deposits and the lending of money) ii) Capital Market Risk (being trading etc either on the banks account or for large clients across Capital Markets- this incl "Investment Banking" etc) iii) Operational Risk Management- this is about transactional risk- the movement of bits and bytes representing value across electronic networks; whether those bits bytes represent money (ie a payment), or a document (eg a contract) is actually immaterial- they are still bits 'n bytes. A bank probably comes closest to being an IT company in (iii)- but "payments" are still seen by society (and by regulators) largely as something "banks" do- although of course that perception is changing. Final point- whether in i) ii) or iii) there is a single common denominator without which each one will crash- namely Trusted Identity- can I be sure that my counterparty really is who he/she says they are..... and that the bits/bytes get to their destination privately and unaltered...... And if there is aproblem, where do I go for recourse...an IT company or a Bank ? ...I know which I would choose.....  All of which which takes us back to why banks and trusted digital identity are so important to each other in a borderless world of public ubiquitous and instantaneous electronic networks....... JGB