However the Blockchain Technology was invented to power cryptocurrencies like bitcoin, but the real impact of blockchain creates an opportunity for various industries other than cryptocurrencies. Especially, Banking is one of the areas that found the technology useful.
Normally, banking sectors perform many steps to keep the payments secure and safe due to the presence of mediators. The involvement of middlemen increases expensive of banking sectors and also increases fraudulent activities. Hence to overcome all these issues, blockchain is taken forward.
The main characteristic of blockchain is a distributed ledger, that keeps a record of various transactions around the globe. In the Banking sector, there are millions and millions of transactions are found across various regions. Hence, blockchain in banking is thought to be the perfect solution to minimize the risks in the payment process.
This technology in banking will keep an immutable record of ownership and enable transaction of the asset among distributing parties.
leveraging the Blockchain technology in Banking could overcome the following changes.
1. Continuous Monitoring
2. Time Delay
3. Payment Costs
4. Record Managing difficulties
Benefits of using Blockchain in Banking
1. Withstand frauds, security, and scalability
2. Reduce payment access time
3. low transaction cost
4. Effective data transparency
Understanding its Avant grade benefits, many banks came forward to incorporate blockchain technology. You too might have also come across the below news.
1. Swiss investment bank UBS (UBS) has planned to create its own standalone blockchain lab to conduct proprietary research for the company to use.
2. Spain-based Banco Santander (SAN) is internally working to develop blockchain-based solutions that will reduce its costs by $20 billion a year by the end of the decade.
Moreover, now Samsung’s enterprise technology arm is building a blockchain-based solution for merchants and banks. Yes, the Samsung SDS had signed an MOU with Israeli fintech solution provider to create efficiencies by automatically logging payments data on bank records and ledgers.
Know More About Rebuilding The Banking Sectors using Blockchain at our Blockchain Development Company.