“The blockchain technology behind Bitcoin crypto-currency has captured the imagination of industries outside the tech sector, from the manufacturing supply chain to banking and finance“– Paul Ebeling
Invented in Y 2008, the blockchain technology has depicted the change that it can bring in different business areas.
The technology has disrupted different industries and sectors. Various features of Blockchain such as decentralization, immutability, and transparency make it appealing for business sectors and domains all across the world. And 1 such industry that is leading the way in exploring the potential of blockchain is the banking and finance industry.
Blockchain holds the potential to transform the finance and banking sectors by reducing potential costs and labor savings.
According to a PwC report, 24% of financial executives from all around the world are very familiar with blockchain technology, with North Americans more familiar than those from other regions.
Observing the wide-reaching implications of the technology, companies are constantly researching to find out the ways of applying blockchain in multiple sectors.
Banking, finance, and insurance companies are working on next-generation finance technology solutions, collectively known as Fintech, and many are exploring cryptocurrency solutions along the lines of Bitcoin, Etherium, and other so-called altcoin technologies.
And at least 40 leading financial institutions have come together as part of the new R3 consortium to develop financial services applications based on blockchain’s distributed ledger technology, which could be used to accurately maintain financial records for a mortgage or allow insurance companies to maintain a secure history of claims.
According to the Harvard Business Review, blockchain will do to banks what the internet did to media.
When it comes to banks and financial organizations of this day, Blockchain has the potential to solve a lot of problems.
Blockchain technology possesses all the attractive characteristics needed by a reliable technology involving money matters. It is safe, secure, decentralized, transparent as well as relatively cheaper.
Blockchain provides a very high level of safety and security when it comes to exchanging data, information, and money. It also allows users to take advantage of the transparent network infrastructure along with low operational costs with the aid of decentralization.
These characteristics make blockchain reliable, promising and in-demand solution for the banking and finance industry.
Have a prosperous day, Keep the Faith!