Can blockchain technology be used in the financial services industry? Will it make a difference in the way we process payments, make investments, and protect identity?
In a world were mobile and electronic banks have transformed the exchange of money into digital transactions, the financial services industry simply cannot ignore blockchain technology and the ways it can completely change the financial transaction process model.
This video reviews six benefits of implementing blockchain technology within the financial services vertical.
- Payments — Thanks to standalone cryptocurrencies like Bitcoin, which has always been a threat to the control of monetary policies, central banks are now shifting towards payment systems that integrate with the blockchain technology.
- Funding and investing — When blockchain is used for raising startup money or brand-new services offerings can be completed in a peer-to-peer fashion. In exchange, investors may receive tokens that will represent future value.
- Accounting — Because blockchain is a shared ledger that processes transactions in real-time, it has the potential to improve accounting by lowering overall costs associated with ledger reconciliation and freeing up resources.
- Identify — The ability to verify the customer is a cornerstone of the financial services industry. Thanks to built-in cryptographic protection, blockchain may potentially offer the optimal identification protection model.
- Inexpensive — Compared to traditional methods moving funds through banks, blockchain payments are irreversible and fast.
While blockchain is still considered a newer technology, there are several major banks that are embracing the blockchain. The fact remains that the time has come for more financial institutions to consider the potential of decentralized and distributed technologies and networks.