Blockchain technology helps banks to record transactions between two parties constantly, using distributed database and cryptography. With the help of blockchain, multiple people can access their transactions simultaneously from different geographical location and check the information and update it. The blockchain technology used in many data processing functions and payments helps to reduce fraud in the banking sector.
Blockchain can help reduce financial intermediates, build a good relationship between trade partners by providing robust security features and fetch real-time information about transactions. Individuals and corporations can make transactions without payment network or bank account. Scheduling appointments and recording customers interactions helps make customer management much easier.
By applying blockchain banks can reduce transactional costs and increase profit and value. Blockchain is highly secured; if a hacker wants to hack or change one block, then he has to hack all the blocks because all blocks are immutably linked to each other. Blockchain helps to reduce the administrative cost and verify details of customers by accessing information available from secondary and third-party sources.
With the help of blockchain, people can do fractional ownership. This means that people can control their own money they don’t have to depend on banks and financial institutes. If all transactions take place on the blockchain, banks can reduce the risk of fraud, eliminate the risk of errors and duplications, and renovate the digital processes.
Many organizations are not deploying blockchain because initial deployment is expensive. Blockchain technology is relatively new and still evolving; only a few people have the skills to support this technology.
However, without being affected by such challenges, blockchain demand is increasing and there are robust increase in blockchain adoptions.
