The blockchain is one of the fastest-growing technologies in recent times. The technology has taken quite a turn in the tech industry and has become the talk of the town.
Banks are primarily responsible for keeping the money of customers secure and providing them whenever they are needed. To be able to do this successfully, they require several processes, along with intermediaries.
It makes the whole financial process a little slower and a bit more expensive. Additionally, the involvement of human intermediaries, along with many manual processes makes the financial industry prone to frauds.
Blockchain technology ensures safe and secure online transactions. It is highly transparent, that makes it a reliable technique to solve the problems faced by traditional banks. The traditional banking industry is adopting this technology gradually.
Blockchain technology has attracted a lot of attention and is changing everything from payment transactions to the way money is raised in the private market.
It is clear that blockchain is the future of data warehousing and computing as a technology. Every industry be it education, healthcare, and finance is about to find itself sooner or later using this technology.
However, it is one of the most discussed techniques in the financial services sector. Let’s take a look at why banks are thinking to use blockchain technology.
Reasons for Using of Blockchain Technology in Financial Industry
The financial sector is extensively adopting blockchain technology because blockchain-based transactions are much faster, more secure, and less expensive than the methods that financial industry use for their functioning.
Cross-border payments, which are taking from two to five days to clear, are an example of this problem.
The cross-border payments processed using blockchain-based solutions take place much faster than the traditional financial system. Also, it ensures high levels of security. Transparency of transactions is yet another advantage of blockchain.
Moreover, the technology also allows all operations and balances to be viewed by the users on the network. Thus, making it almost impossible to manipulate. All this makes blockchain-based payment systems attractive to the financial industry which results in saving their operating costs.
According to the BlockData research, the remittances on the blockchain are 388 times faster and 127 times less costly than traditional financial systems. initial public offering services