In recent years, banking sectors have seen a drastic change with many new digital innovations. Right from getting instant access to our bank accounts to making all our payments online. One such disruptive innovation that is greatly influencing the banking sector is BLOCKCHAIN.
Back in 2008, it is proposed as a record-keeping technology behind cryptocurrencies. But today blockchain technology has stepped far beyond that. It’s varied features like decentralization, invariability, and transparency make it impressive for banking sectors all over the world.
How Blockchain influences the banking sector?
Traditional financial transactions include a lot of manual processes and mediators to perform the necessary function. This makes the system more complex, expensive and leads to the chance of errors and fraudulent acts.
But Blockchain technology transforms every minus in the traditional method to plus and helps to increase the efficiency by faster processing of digital documents, speedy data development with greater security and transparency. As blockchain uses a distributed ledger which stores the complete business transaction details to a permanent unbreakable chain. This helps to identify the blocking of undesired intervention and reduces the risk of data error.
Blockchain technology not only helpful for banks but also helps customers who are using banking services. It provides quality identity protection, document management, and guarantees the constancy of the published customer documents. It also gives the financial sectors the ability to modernize and optimize communication with their customers.
History Of Transactions
One of the key benefits of blockchain is immutable transaction history. Any transactions that are once done can’t be removed. This would help to get rid of most of the crimes committed against the financial institutions.
Easy & Faster Transactions
Blockchain improves the speed of transaction processing. It’s distributed nature reduces the need for intermediaries to approve the financial transactions between consumers. This offers a faster and safer way to exchange money at lower rates than the bank charges.
Blockchain technology reduces the operating cost and brings customers closer to the banks in real time. It gives an opportunity for customers to directly access their information. It ensures the payment and settlements taken place simultaneously which reduces the management cost by the treasury.
Improved Data Quality(Smart Contracts)
Blockchain uses the concept of Smart Contracts. It contains a set of rules under which the parties of the contract agreed to interact with each other. It allows the storage of any kind of digital information and allows the party to access or change of data only in accordance with a set of predefined rules.
Most of the financial institutions spend millions of dollars per year to maintain all their customer information. But blockchain allows storing entire information in one place. This guarantees the integrity and non-repudiation of the stored data. It helps organizations to access the verification detail of a particular customer from another organization, thus eliminates the data duplication.
Blockchain is revolutionizing every industry. Get ready to switch to the modern technological advancements. Need your custom blockchain solution? Just drop us a line below or mail to us your queries.