Blockchain is likely to change the financial and banking sectors by reducing potential spending and business investment funds. According to the PricewaterhouseCoopers report, 24% of financial officials around the world are very familiar with blockchain technology. Traditional processes and paperwork should be replaced by new collaboration, speed, trust, economy and innovation. At present, some leading financial institutions are already in contact with blockchain technology and are opening up the way forward. Blockchain technology can work together to eliminate long-term friction, create new solutions, and achieve tangible business results.
Financial Services Industry
The 2 main advantages of blockchain for financial services industry are decentralized distributed books and transparency in transactions. You don’t need a third party service to transfer the money or do a payment, blockchain allows direct transactions between the customers. Also another advantage is eliminating the risk of counterparty through short transactions.
Blockchain in the banking industry
In banking industry, Blockchain provides very high security, transparency and reliability in exchanging the information, transaction data and funding. In the key functional areas of the bank, good transactions and savings can be achieved through distributed databases, thereby reducing the transactional costs for international and domestic payments. Traditionally international payments can take up to 4 or 5 days to settle. But with Blockchain we can make instant payments and transfers significantly reduce the cost of the bank and thus increase the efficiency.