Blockchain Development in Banking & Finance
That being said, Blockchain is not a mystery anymore to modern businesses. It is going to be a 20 Billion Market by 2024 and on average, enterprises are investing $1 million in Blockchain projects. Furthermore, 69% of banks are experimenting with this technology and the number is growing rapidly. Hence, this is clear that Blockchain is the next big thing for the financial sector. Now as a business owner, it is important for you to know how to manage your transactions better and why you should invest in Blockchain development.
In this blog post, we are going to discuss how Blockchain development is taking financial management to a whole new level. Let’s start with some stats and facts. Bitcoin, a money exchange system, pioneered blockchain technology was first introduced in 2009. Today, it has more than 8 million accounts. From March 2015 to Feb 2017 the fees have gone up to 1289%. Moreover, Cryptocurrency has the potential to reduce bank infrastructure investment by 30%. As of now, Bitcoin has 29910 stars on Github and it is expected to do more in the future.
Now that you know a few key things, let’s see how Blockchain development can be helpful for financial management.
SIMPLIFIED CROSS-BORDER PAYMENTS: BLOCKCHAIN DEVELOPMENT
The transfer of money and virtual assets has always been an expensive and slow process. This is particularly true for cross-border payments. Blockchain technology is able to speed up and simplify this process as well as reduces the costs significantly. With the help of advanced eWallets, now it is much easier to transact overseas.
2) FRAUD & CYBER CRIME REDUCTION: BLOCKCHAIN IN BANKING BLOCKCHAIN DEVELOPMENT
Blockchain has the potential to reduce fraud in the financial world. It is getting a lot of attention as 45% of financial intermediaries suffer from fraud and cybercrime every year. Most of the banking systems around the globe are built on a centralized database. It makes them more vulnerable to cyberattacks because once hackers breach the database they have full access. On the other hand, blockchain is a distributed ledger where each block contains a timestamp and holds batches of individual transactions with a link to a previous block. This technology would eliminate some of the current crimes being perpetuated online today against our financial institutions.
3) LESS RELIANCE ON CASH: BLOCKCHAIN PROGRAMMING
Digitization of the financial sector helps in cost reduction at large. Widespread use of blockchain technology, together with updates to compliance regulations, will enable central banks to substitute their own regulated, blockchain-based digital currencies for notes and coins. Some central banks, such as the Bank of England and the central bank of Norway, are already discussing discontinuing the use of notes and coins entirely.
4) EASY KYC (KNOW YOUR CUSTOMER): BLOCKCHAIN COMPANIES BLOCKCHAIN IN BANKING
According to Thomson Reuters Survey Financial institutions spend $60 million to $500 million per year to keep up with Know your Customer (KYC) and customer due diligence regulations every year. With the advancements of blockchain development, there will be no need for KYC investments. Blockchain would allow the independent verification of one client by one company to be accessed by another company so the KYC process wouldn’t have to start over again.
5) EASIER & COST EFFECTIVE PAYMENTS: BLOCKCHAIN COMPANIES BLOCKCHAIN IN BANKING
Blockchain is remarkable in improving the payments process. It would enable higher security and lower costs for banks to process payment between organizations and their clients and even between banks themselves. In the current reality, there are a lot of intermediaries in the payment processing system, but blockchain would eliminate the need for a lot of them.
Interested in some more Blockchain stats? Read this: Blockchain Stats and Facts 2018 (infographic)
6) Seamless identity management: blockchain companies. Along with the development of blockchain, a significant change in identity management has been introduced. Users can choose the way they identify and who is informed.
You still have to somehow register your identity in blockchain, but you can later use it for other services. The changes introduced when creating Blockchain are very helpful because the user's identity in the digital network is secure and enables trouble-free access.
7) REMOVE AGENT WITH SMART CONTRACTS
The smart contract is a special algorithm that automates contract processing. With this agreement, users can sell real estate, exchange shares, money, documents or other property rights. One of the most important features of intelligent contract implementation is that you don't need any intermediary services such as brokers, notaries, agents, etc. for transactions.
4 ways banks can use blockchain technology
- Improved data quality
- Improved security
- Faster transactions
- Reduced costs
Blockchain Development in Banking & Finance | EightDevs
For this reason, it is clear that the development of blockchain has a revolutionary impact on the financial sector. Even if you're not in the banking industry, blockchain can help you manage your payments, loans and financial data. If you are interested in blockchain development and would like to create fantastic applications such as blockchain wallet application, supply chain applications, ICO, and crowd sale, then EightDevs, a blockchain development company, can help you. Hire us and get secure and advanced blockchain applications at affordable prices.