You might have seen that virtually every jurisdiction in the world takes stringent measures to make the banking industry conform. This, combined with the conventional nature of the process in the banking arena, has added to the immunity to technological disturbance of the said sector.
But, today, Blockchain has spread so fast, and digital currencies and ICO’s have received remarkable popularity. There is no doubt that the world is prying to know how blockchain will affect banking in the future.
The Solution of Banking Issues
The many amazing features of this technology make it not just extremely fascinating but also able to address any problems currently experiencing by banking institutions. Blockchain improves security in storing vital information and transmutation, rewards a decentralized as well as transparent network infrastructure and considerably lessens the expenses involve in operations. These astonishing attributes make this technology an extremely promising as well as in demand solution even in a field as restricted as the banking sector.
Deltec Bank www.deltecbank.com Chairman Mr. Jean Chalopin mentioned at recently concluded Deltec Annual conference in the Bahamas “Almost all credit and financial organizations need third party’s intervention to help them perform their daily activities. The application of mediators makes the service of financial organizations extremely costly.” This technology takes a decentralized way and so gets rid of third parties; as a result, service will be obtainable to customers at reduced prices.
Popular Application Cases of Blockchain Technology
This technology will upset most factors of banking. Some use cases or transformations which you must look forward to seeing take account of:
The bank and financial organizations can make use of this technology to decrease expenses and improve the speed when doing bank to bank transfers and international transfers. Big financial companies and independent financial analyst agree that this technology is extremely likely to substitute the current transfer scheme in the coming years.
- Customer Identification System
This technology can be utilized in the banking business to aid in the making of a decentralized customer identification system. This is appropriate as all credit institutions need to do Know Your Client approach before processing the applications. Using blockchain, they will be determined on one occasion, and the information will be stored in a safe location where all banking organizations in the system can access it.
Traditional insurance can enhance considerably by automating payment process on insurance cases. Execution of smart contracts which are done automatically will eliminate the long technical delays that involve a considerable number of managers making it likely for people to get payments instantly.
Soon enough, the sector of banking is likely to harvest the perks of a carefully planned methodical and continued approach to applying blockchain in the processes. This latest technology will augment efficiency, security, speed, as well as lower costs in the mainstream of their operations. This will lead to a significant development in the superiority of the services to the end- users.
The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.