DigitalX
DigitalX
Apr 29 · 2 min read

By Scott Benson, Head of Compliance

Most financial institutions have been in a long-term relationship with complex trading infrastructures. But it hasn’t always been smooth sailing — often resulting in drawn-out processes to settle trades, move assets, reconcile records and secure transactions.

So maybe it’s time for financial institutions to explore a potential with blockchain technology?

Blockchain technology could transform the financial services sector and the compliance teams that support it.

‍Immutability is perhaps its most attractive quality — blockchain transactions cannot be deleted or counterfeited as each block is secured using cryptography and validated by the chain participants, thereby preventing changes without participant approval.

For financial institutions and their compliance teams, blockchain can be a powerful digitized, ledger that offers numerous operational benefits, including:

  • Reduced fraud and increased security: Since blockchain’s records are immutable and visible to all participants, the technology can significantly improve data security and reduce the risk of fraud.
  • Increased efficiency and cost savings: Compliance teams spend an inordinate amount of time reconciling records and tracking transactions. With blockchain, there is no trust issues — trust is established via cryptography and collaboration. By minimizing the need for intermediaries, blockchain can help financial institutions improve operational efficiencies and reduce infrastructure costs.
  • Enhanced customer experience: Unlike other types of assets, digital assets can be available immediately for consumers and businesses to use. By ensuring asset availability and enabling financial institutions to share information with clients more quickly, blockchain helps financial organisations deliver an improved customer experience.

Like any relationship, there’ll be ups and downs as the industry works through blockchain’s regulatory challenges and new frameworks. However, blockchain remains a promising prospect for the financial services sector.

The information in this article is general in nature. Any advice it contains is general advice only and has been prepared without taking into account the objectives, financial situation or needs of any particular person. The article content is not intended to be a substitute for professional advice and readers are urged to seek their own appropriate advice before making decisions. Any reference to a particular investment is not a recommendation to buy, sell or hold the investment.

DigitalX Ltd

DigitalX is a Blockchain Technology Company based out of Perth and New York. We provide ICO advisory services, blockchain consulting services and blockchain-related software development. DigitalX is well placed to deliver advice to the Token Sale marketplace.

DigitalX

Written by

DigitalX

ICO Advisory and Blockchain Consulting Services

DigitalX Ltd

DigitalX is a Blockchain Technology Company based out of Perth and New York. We provide ICO advisory services, blockchain consulting services and blockchain-related software development. DigitalX is well placed to deliver advice to the Token Sale marketplace.

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