How Blockchain can Transform the Finance Industry
Blockchain technology has provided a new shape and era to the finance and banking industry. With technology such as a blockchain in finance, every industry aspires to drive their business forward towards growth and success.
Reshaping and enhancing the potential of the financial industry, blockchain is gaining its pace and place in the industry with a rather profound grip.
Its deployment in the financial sector, especially that of financial aspect and payments makes it more crucial for the industry’s transformation plan and strategies.
What is that the Finance Industry needs from Blockchain?
Blockchain provides growth in the form of three sectors, trade finance, global payments, and KYC/AML. In these three sectors, the blockchain has proved to be of greater aid by getting its place majorly in financial services, cross-border payments, and digital identifications and verifications.
The finance industry needs to enhance its pace in the market along with its finance function, making it the main agenda of it all. What finance industry aspires to overcome with the adoption of transformation includes:
- The finance industry needs to improve its productivity its processes that are ledge maintenance, payments, and reconciliation.
- The finance industry requires to make sure of its compliance nature with the rapidly changing regulations
- The finance industry ought to improve its impact to create a better customer experience and get better at customer analytics. Also, it needs to improve its response time to gain rapid growth and organizational agility.
- Also, the finance industry is to improve transparency, accuracy in transactions, trust, and contracts.
These points cover everything on the top priority of the finance industry to gain transformation on a huge and better level.
As per a survey conducted by Cointelegraph, it is concluded that about 60% of the finance executives are to deploy blockchain to eliminate routine tasks.
These points of transformation can be achieved by the finance industry by adopting blockchain. In short blockchain in the finance industry can provide its useful properties to overcome the negative areas of finance functions and enhance its productivity and strategy.
How Blockchain in Finance industry is a key to transformation
According to Blockchain Industry experts, It is a major business turning tool that can provide all strategies to be a success including a basic customer analytics process. It is a distributed ledger that is a collection of data including -
Transparency
It is one of the properties of blockchain that keeps the identities secure by making the transactions visible only on the network and away from tampering.
De-centralized
The blockchain is not controlled or carry forwarded with a singular control or system, it is a block of data that is first approved by the members of the party and then carried forward in the chain making it a blockchain. This provides access to all the members, making it a central authority of all the involved members managing it.
Immutable
The data in a block before being carried or linked with the block in the chain is first approved by all the members. This step is very necessary because once the data is approved and attached to the chain of blocks, it cannot be changed or altered. This, however, makes it a bit of a complex task but also provides security in its own special way.
These properties of blockchain can easily cut costs, lower the usage of time, and increase efficiency and productivity of the finance industry if adopted.
The View of Blockchain in Finance Industry
The blockchain in the finance industry is the latest trend utilized as a business strategy by many companies.
Nearly about 24% of financial executives from all around the world are conversant with blockchain technology according to the PwC report. About 77% of Fintech is expected to adopt blockchain in its production system by 2020, according to Global Fintech Report 2017.
Any company using a blockchain is not required to maintain ledgers to record their transactions on receipts basis, moreover, the transactions will get recorded in the open ledger or a joint one if it’s preferred. The great thing about this is that the details of its price, ownership, and asset will get recorded, verified, and settled in the real-time factor including every node.
Blockchain simply enhances productivity, speed, and efficiency for the finance industry by reducing costs and time usage. It is a technology that if used can bring a major transformation in the sector.
