As per statistics, Blockchain is going to occupy 20 billion market by the year 2024 and enterprises are investing approximately $1 million on Blockchain projects. Around 69% of banks are using this blockchain technology and this number is on raise. This proves the importance of Blockchain technology in Finance sector. If you are a business owner, then it is important to understand the role of blockchain technology for enhancing the ease in financial transactions.

In 2009, Bitcoin was introduced which is a money exchange system powered by blockchain technology and now it is accounting for about 8 millions. It is interesting to know that from March 2015 to February 2017, the fee has reached 1289%. Also, this Cryptocurrency is helping in reducing the bank infrastructure investments by 30%. Currently, bitcoin has 29910 stars on GitHub and is expected to raise soon.

• Simplified Cross-Border Payments:

There was a notion that the transfer of virtual assets and money are time taking and expensive process. This may be true for cross-border payments. But, blockchain technology has speed up the process. Not just speed, but also it has resulted in simplifying and making the process cost effective. With the help of eWallets, the process has become much simpler.

• Reduction in Cyber Crime and Fraudulence

Blockchain technology helps to reduce the fraud rate in financial world. As per statistics, 45% of financial intermediaries face fraudulence and/or cybercrime every year. Banking systems are mostly based on centralized database that makes it more vulnerable to cyberattack. This is because, if the hacker breaches the data, then they get the access to the complete data. Whereas, blockchain is a distributed ledger in which each block has a time stamp and contain batch of individual transactions with the previous block link. This helps in eliminating some of the crimes which are carried out online.

• Less Reliance On Cash:

Introduction of digitalization in the financial sector helps in reducing the cost largely. Compliance regulation along with blockchain technology help central banks to replace their own regulated, blockchain’s digital currencies with coins and notes. Examples of some of the central banks using this technology are Central bank of Norway, Bank of England.

• Ease in KYC Process

Financial institutes spend around $60 million to $500 million per year on KYC and customer due diligence regulation every year, as indicated by Thomson Reuters Survey. Blockchain technology serves as a perfect substitute for KYC investment. With the help of blockchain technology, individual verification of client can be done by one company to be accessed by other, so that KYC process need not be done once again.

• Easier and Cost Effective Payment:

Blockchain technology show a remarkable improvement in the payment process. The best part of using this technology is that it ensures safety and required low cost for processing the payment between clients and organizations and even between banks as well. Blockchain technology helps in eliminating the various intermediates involved in the payment process.

• Seamless Identity Management:

Blockchain technology helps in making the process of identity management simple and easy. Users will be informed about the process of identifying themselves. They need to register themselves for identity on the blockchain and later on they can re-use the same for identification for other services. This is very useful because identity using the digital network is safe and seamless.

• Removes Intermediates with Smart Contracts:

Automation of Contracts like deal making process can be made smart using smart contract, a special algorithm. This algorithm helps the users to exchange shares, sell realities, exchange money, documents and proprietary. Also the part of this algorithm is that it eliminates the various intermediary services like notaries, brokers, agents, etc. to make the transaction complete.

Conclusion:

From the above mentioned points, it is quite evident that the blockchain technology is revolutionizing the financial sector. Not only the people who belong to financial sector, but also various people are getting benefited out of using blockchain technology like financial identities, loans, payments, etc.

UPCOMING TRAINING SCHEDULE:

Require a different session ? Let us know