The majority of financial institutions today are banks. The basics of bank technology have not changed much in the last hundred years. They utilize processors for the computation of basic accounting entries. These processors run operating software with no specific customization. These processes and software run on large mainframes with many thousands of processors. It will only take a minor change in mainframe software and hardware to break the software of most banks.
A Neobank will allow banks to build the software that runs on the hardware that is owned by the bank. The software will be created by banks and implemented by Neobanks. The mainframe hardware will consist of massively parallel processors (IBM is good). These processors will utilize various algorithms, the most popular being the high speed algorithm known as the Synchronous System 7. The aim of banks and Neobanks is to create transactions and analytics in order to create a core banking system that will function exactly like a standard bank. Banks will be able to achieve a time speed up of transactions between banks and even to do much more than that. Neobanks can do much more than banks ever could before, as well as increase the efficiency and effectiveness of a bank.
A Neobank will allow banks to build the software that runs on the hardware that is owned by the bank. The software will be created by banks and implemented by Neobanks.
A Neobank will have its own infrastructure. The equipment will be built to a very high standard of efficiency and will be powered by the grid and will have a very reliable system for generating power. This infrastructure will be designed to be able to be easily reconfigured. The grid can be used to power the hardware for a bank when its main source of power is disrupted. Alternatively, if the power grids are only used to provide power to the grid, a bank could build its own backup battery to power its equipment in an emergency. If the power grids are used to power the entire infrastructure for a bank, then the bank could switch to a backup power source in an emergency.
A Neobanks will be capable of creating and executing transactions quickly. A bank can do a lot more than a regular bank can in the time it takes to execute a transaction. A few milliseconds can result in an event that affects an account. A transaction can only be initiated at a very high speed. In fact, a few milliseconds of processing may not be required to create a transaction. The fastest one hundred transactions that have ever been run by a bank is only two seconds in the end. These are slow transactions. The purpose of the fast transaction is to secure the transaction while it is still on the processing engine. The results of these transactions will be entered into a database.In an attempt to make the bank market more secure, banks are demanding new regulation, with the likes of Fireblocks crypto contributing to somewhat of a self-regulating developments. Banks are also trying to find ways to make it easier for them to access a wider range of investors.
