The banking industry, as we all know, is strictly regulated in all jurisdictions. The transactions that happen with cryptocurrencies are impossible to do with banking and financial services. However, that is not for long. The wide dissemination of the blockchain in the past few years, the ICO boom and the overwhelming use and popularity of cryptocurrencies have rendered the blockchain technology superior and can’t be ignored anymore. The management of most banks and financial services can no longer ignore or deny the fact that the blockchain technology has potential.
The blockchain technology, even in its infancy, has had a significant impact in different industries and sectors too. Large bank C suite executives are now investing in the research of the technology and how it can be integrated into the banking system. Tests of the decentralized assets technology and implementation in the business process are being conducted every day.
Most banks and financial institutions cannot do business without mediators and a number of them to be precise. The mediators make the services of the institutions much more expensive. Blockchain technology will enable the banks, and financial services to get rid of unnecessary mediators. This way, customers can be provided with cheaper services.
Large financial services and bank management are also considering the possibility of having Blockchain as an alternative to the SWIFT bank transfer system. Blockchain is faster and cheaper if fully implemented as compared to the current SWIFT system.
Today, banks and credit organizations as well have to do KYC during application processing. Blockchain is being used in the design and creation of customer identification system based on the distributed ledger system. The blockchain technology enables users to get identified once, and the information is securely stored, and other banks in the system are granted access.
The possibilities of a banking system going bankrupt are very likely. Banking and financial activities relate directly to insuring loans and deposits. Even in the most developed countries, these banking functions are seen as vulnerable and unreliable. With blockchain technology, a ledger technology for the loans is decentralized, and a single organization does not control the deposits. This way, the system can never go bankrupt.
The blockchain technology provides the current banking system with different features with added advantages — added security from identity to secure transactions, fast transaction processing, reliability, transparency, and much more. C-suite executives today are taking advantage of this to stay ahead of the competition providing their customers with better services.Tags: blockchain in banking sector, blockchain in finance, blockchain technology