How Blockchain Technology is Impacting Financial Services & Banking
Now we can smile with how fast blockchain is changing banking and finance transactions services. It is not long ago people have to walk to the banking hall before they can access banking services.
But now, with the coming in of internet, we can do financial transactions through online. Banking today is not a crucial and cumbersome work as it was before internet and other new banking tech innovations we’re having today.
The technology has brought cheaper financial transaction cost, faster and more convenient financial services. With the advancement of technology, you can send and receive money across the global as fast as you press send button.
What is blockchain?
Many people do not understand the mystery behind blockchain. Blockchain technology is the emerging trend in the banking industry which makes the financial transactions services to be easier.
Blockchain is an online system that deals with financial services. Blockchain is an independent system with a number of contributors that make online payments faster and easier.
At first, blockchain technology was largely peer to peer financial transaction services. But recently, blockchain platforms and solutions receive a lot of attention from the banking sector and several other financial services’ issuers are experimenting with blockchain after seeing its great impact in business.
This sets blockchain to make revolution in banking sector and disrupt traditional banking. There are several use cases of blockchain application in retail and commercial banking since your shoppings and other transactions can be completely done online without human interference.
The following section explains blockchain revolution in banking.
The blockchain revolution in banking
Blockchain has become number one priority to banking services. The unique, safe, secure and capabilities of the blockchain technology are attractive to a wide range of stakeholders within the financial industries and therefore, it will radically increase its adoption.
Furthermore, blockchain technology have less financial interest compared to other banking services which make it conducive for banking.
This is more reason both small and medium scale business owners can now access credit facility from bank using online facilities
- Additionally, most banking systems around the world are more vulnerable to cyberattack because they have point of failure that make hackers to breach the system. However, blockchain technology has transform finance and banking through its tight security that reduce fraud.
- Blockchain technology application eliminates some of the current fimancial crimes being perpetuated online today against our financial institutions.
The technology is making a lot of impacts and progress in banking and it changes the way banking system was conducted.
- Blockchain technology put serious regulations on money laundering as it allows independent verification of one client by one organization to be accessed by another organizations.
- Since blockchain makes every information pertaining to financial transaction public, therefore it is easy to track down terrorist activities.
- Furthermore, with blockchain technology, lending and borrowing money from peers be done based on the terms and preferences of the users. That bring a lot of changes in banking as many banking institutions borrowing is based on their terms and conditions.
- During the past, people were struggling to access cheap and reliable banking services but blockchain technology has managed to reduce current pain-points and expensive costs in banking.
However, blockchain revolution in banking does not benefits financial services alone but also other businesses and individuals.
To wind up blockchain revolution in banking by moving banking services from manually driven into online process which is accessible, cheap, efficient, audible, private and beneficial to all stakeholders.
Therefore, new technologies are changing the world we are living and serve for the development of all human race. Don’t forget to constantly learn new things and achieve success in your activities!
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This article is authored by Ora Wedel from Miami. She’s a crypto journalist with almost 10 years of experience. She is also a contributor at Xtrabit.
