The blockchain technology that invented back in 2008 has described the change which as impacted different business areas including banking and financial market. The technology, even in its beginning, has disrupted various industries and sectors. The growth of blockchain technology and cryptocurrency has been so rapid. Blockchain technology and the cryptocurrencies have today become a parallel platform.
Different features of Blockchain technology such as decentralization, immutability, and transparency make it captivating for business sectors and domains worldwide. One such industry that leading the space in exploring the potential of blockchain technology is the banking and financial market.
According to a PwC report, 24% of financial administrators from all around the world are very familiar with blockchain technology, with North Americans notably more familiar than those from other regions.
Whereas according to a leading industry website, 40% of people in the USA haven’t visited either a bank or credit union in the past six months.”
Any existing system can have some issues. Here let us look at some of the most usually faced issues with the Banking system.
- Account Hacking & Net frauds
- Double spending
- The financial crisis and crashes
How Blockchain can resolve all the issues with the Banking and Financial Market?
Blockchain has steadily introduced into the world of Banking and Financial Market to change the payment transaction environment. It reshaped the financial services by:
- Dislodging incorruptibility and rolling efficiency and simplicity by founding new financial processes and services infrastructure
- Enabling the inflow of liquid cash by smart contacts, through which participants will be able to turn fiat currencies to support foreign exchange
- Promoting cross-border payments in real-time
Blockchain In The Banking and Financial Market
Many people know the power of blockchain as a technology. What is unknown is how this technology can affect the banking industry. Some experts have likened the dynamics that blockchain will bring to the banking and Financial Market like the internet brought to the media.
When analyzed by itself, the blockchain infrastructure gives safety and security that no other system can. In such an industry that is sensitive about data as the banking and financial sector, blockchain brings a promising solution to customer concerns. The reliability and efficiency of the technology are also very engaging. Hence, the overall benefits of blockchain are lower costs, increased speed, and improved security.
How Blockchain Can Be Applied In Banking and Finance Market
With such promising features, you would surely want to know whether any banks are using the blockchain technology. Guess what? – YES. There are already big industries that not only adopted the technology, but they have also committed to promoting the development of the infrastructure. JP Morgan Chase is one of the financial industry that has put their faith in this technology. Financial companies like Goldman Sachs and Bank of America are also involved in both the business and research aspects. These organizations, among others, are expecting to bring cryptocurrency to the fore in the market.
To summarize, blockchain technology might be encountering various challenges at this time but it is still the most promising method in the financial sector. The many positive problems that are associated with this technology make a powerful case for its future viability. The technology is not only pushing financial organizations to evolve, but it is also transforming the way the average consumer imagines. This technology is no longer observed as a competing tool. Traditional financial companies have welcomed it and the future for blockchain can only get brighter.