It is hard to picture the future as something that can easily be predicted. One simple prediction is that blockchain will be useful in the financial industry over the next several years.
Let’s look at 12 ways in which blockchain could be used in the financial services industry in 2020.
BLOCKCHAIN AS A SERVICE (BAAS)
The cloud-based service that enables users to develop their own digital products by working with blockchain, BAAS, had been widely accepted and utilized by a huge number of big companies such as Amazon, Microsoft and the rest. Thus, it will only be a matter of time before most financial institutions follow suite in the year 2020.
FEDERATED BLOCKCHAIN MOVES TO THE CENTER STAGE
Given that Blockchain networks can be grouped into Private, Public, Federated or Hybrid, and it is made to favor multiple authorities, from predictions by major Funchal pundits, in 2020, there will be an increase in the usage of federated blockchain because it enables the customization of private blockchain networks.
Given that Bitcoin, the most popular and highest cryptocurrency has in recent times somehow influenced banking sectors adversely, with the emergence of stablecoin, most financial institutions will be keen to make use of this coin alongside Facebook’s libra in stabilizing the market, thus placing it as one of blockchains benefits for banks.
SOCIAL NETWORKING PROBLEMS MEET BLOCKCHAIN SOLUTION
Given that there were over 2.77 Billion social media users around the globe, as of 2019, and that blockchain was proposed to be used in protecting user data, financial institutions would be more than enticed if this happens. This is because, prior to the blockchain proposition, user data were never safe, and banks hated these platforms for that. So, the introduction of blockchain will help blend the relationship between banks and social media.
BLOCKCHAIN DATA DISSEMINATION (Interoperability)
With Blockchain interoperability, financial institutions such as banks will be able to share information, and other data across to other financial substations, in the most east and secured of ways.
ECONOMY AND FINANCE WILL LEAD BLOCKCHAIN APPLICATIONS
According to the PWC report, 77 percent of financial institutions are expected to adopt BT (blockchain technology in banking) as part of their in-production system or process come 2020 because of how it successfully blends in with cryptocurrencies.
BLOCKCHAIN INTEGRATION INTO GOVERNMENT AGENCIES
The thought of the distributed ledger is also enticing enough to lure financial institutions that often have a high volume of information to process and store. As we speak, each bank has its separate database, and it isn’t planning on fading off anytime soon.
The first priority for any financial body is in the area of security. And given the tight and popular security pattern blockchain holds, most banks are obviously going to use this in storing assets that are of extreme value.
BLOCKCHAIN With AI
Banks do have a good number of tasks to process daily. And given that blockchain is now incorporated with AI, most financial bodies will certainly want to use this because it will help in reducing their work stress and the rest. This will cover tasks like data monetization, data storage and so on.
M BLOCKCHAIN EXPERTS
Given that most financial institutions would want to adopt blockchain, they will also need to hire some Blockchain experts in doing so.
Another reason why banks will use Blockchain is that their ledgers are unalterable. Once you’ve written on it, that is it. And this is the feature that often prevents the occurrence of fraud while using it.
Given that blockchain can be used in both domestic and international payment, most banks have started keying into the idea of using blockchain for payment.
In a nutshell, the main blockchain benefits for banks is that it provides the level of security and accessibility any financial institution could wish for. And this is why it’s quite obvious that blockchain, will be used in the finance industries come 2020.