How Big Banks and Financial Institutions are Banking on Blockchain

By:Supriti Chatterjee 2019-03-20

Now, there are different business sector want the best solution to change the way of business. Over the past few decades, blockchain technology gains immense popularity among many business areas. 

The technology is famous for different features like -

  • Immutability
  • Transparency
  • Decentralization

It gives an appealing solution to the different business sector and works well for all domains in the world. Banking and financial industry gain potential benefit with the help of blockchain technology. It manages the potential to transform the bank and finance sector to minimize labor saving and cost. A large bank and financial institution make the test of decentralized asset technology and execute better technology that convenient for the business process.

The institution frequently makes an investment in different projects by using blockchain based solution. It plays a big role in the success of bank and financial institution. This will help those sectors to save millions of dollar. It has the capability to solve lots of issues in the banking and financial sector. It comes with the excellent features that ideal for the sectors and minimizes problems. The interesting characteristics of blockchain drive attention of bank and finance sectors very much today.

The necessity of using blockchain technology:

With the advent of technology, most of the bank and financial sector find out the best ways to implement the ideal solution. When it comes to banking and financial sector, lots of funds are transferred from one place to another in a regular manner. The blockchain technology makes global financing system most powerful.

  • It provides a high level of security for storing and transmitting data
  • It offers open and transparent network infrastructure and lowers the cost of operation
  • It maintains excellent characteristics that fulfill the demand of bank and financial institution
  • With the implementation of the blockchain, customer and bank gain excellent services and potential benefit
  • It gives a useful solution to the bank and financial institution to reduce the operational cost
  • It makes bank to bank and international transfer in a quick manner

It is very easier to detect errors and fraud in the financial management system. Most of the bank and financial institution are interested to adopt blockchain technology due to various reasons. It gives an excellent chance to the bank and financial institution to lower transaction cost and paperwork needed for the transaction process. This one makes financial and banking institution increasingly valuable and profitable. It is suitable for money transfers, back end functions, record keeping, and others.

Why it becomes very popular:

This one works well in different areas and solves as many problems in a quick manner. It acts as the best alternative for the financial and banking institution.  It meets the needs of the finance industry and works in the different field in the sector.

  • It is considered to be the most ideal solution to make client identification system depending on distributed ledge technology.
  • It is most demanded one for all organization to carry out KYC while processing application
  • It allows users to be identified simply and details of users stored in a secure manner with the complete access to another bank.
  • With the support of blockchain technology, financial and banking activities like loans and ensuring deposits conducted without any problems.
  • People quickly able to get the payment with no delay
  • This one changes the way of operation of banking and financial industry

Reduce fraud activity:

Security is most important when transferring funds from one location to another. Fraudulent activities can occur in different forms. For this purpose, the institutions rely on using the best technology that prevents financial fraud and others and provides excellent security for the operation. With the entry of blockchain, bank and finance sector need to utilize secure and non-corruptible technology operation on the distributed system.  The institutions never face any single point of failure during operation and get full security. So, the transaction is stored by means of the block with the cryptographic method.

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