What does Blockchain have for Banking and Finance?
Blockchain could save banks millions in cash, by just reducing the processing cost.
The system is synced with the records or ’blocks’ with identical information, Blockchain Technology serves you with a decentralized ledger that essentially tracks transactions.
The blockchain is a powerful technology that enables digital currencies to be open, anonymous, and secure.
Blockchain essentially is a database about every crypto transaction in detail. Usually known as a “public ledger,” the log contains data about when and how each transaction took place.
The major banks across the globe are now trying blockchain to ease the process of money transfers and record keeping. Blockchain could change the paper-intensive finance process with a decentralized electronic ledger that gives all the participating entities along with the banks, complete access to a single source of information, allowing them to track documentation and validate the ownership digitally.
Let’s make this simple…
Banking and finances need systems which can provide quicker and enhanced customer service.
Blockchain could serve you with all you need as a bank or finance institute…
Reduction in frauds
Almost 45% of financial intermediaries are prone to fraudulent activities and financial crimes.
Banking systems being built on a centralized database, are more vulnerable to cyberattack, as the hacker gets full access to this respective system.
Blockchain being a decentralized system and a distributed ledger could get rid of these kinds of online crimes, making the bank and finance industries more secure.
Better Identity and KYC (Know your customer)
In order to reduce money laundering and fake identities regulations are important for banks to verify and identify their customers.
Blockchain could integrate the verification process within multiple organizations, it could allow an organization to access the details of a customer by another organization.
With technologies like blockchain and AI, you could make this process much easier and simpler, it could make a significant reduction in your administrative costs for compliance departments.
With the use of smart contacts, blockchain and AI entire transactions are recorded and can be audited, this eliminates the possibility of unsanctioned transactions.
Blockchain doesn’t just keep a record of assets and transactions, but also every activity associated with these assets, making it harder for corruption and misuse.
Banking and finance industry involves collection of personal data; your personal information, documents, transactions and record of financial assets could be exposed, resulting in misuse.
Using the blockchain your data is shared only with the right authorities, The data is shared only on a need to know basis, securing your privacy.
How could Blockchain Technology help banking and Finance, In a nutshell?
Blockchain could drastically reduce fraudulent activities, provide you with solutions focused on identity and better KYC processes, along with digitalization of documents, faster transactions and much more secured and hassle free banking solutions.