bankingciooutlook

Blockchain: A Foundation for Advanced Banking Operations

Banking CIO Outlook | Tuesday, July 30, 2019

Fintech is changing the perceptions of the finance industry, enabling it to raise the standards of service quality and client experience.

FERMONT, CA: The overwhelming popularity of cryptocurrencies and the ICO boom have led to the reality, which uncovers the potential of blockchain and its impact on banks and economic institutions.

Experts have always struggled to build a safe and secure means of the transaction since the onset of the technology in the banking world. To transfer cash, one has to go through an application from a third party or an intermediary or regulatory body. But here's a digital currency–totally decentralized. Today, a customer can instantly give cash to anyone in any part of the globe without having to go through any trouble or complexity.

Blockchain provides users with the convenience of doing the transaction from anywhere in the economic landscape. The primary problem for banks today is the growing spending resulting from a continually changing regulatory setting and rapid technological advances. Also, let's not forget the comprehensive and time-consuming process of transferring global money and KYC processes. Blockchain provides just what today's banks need: quicker transactions and cost-efficiency.

The invincibility of blockchain is yet another element that makes it so desirable in finance. Besides, a decentralized network implies that one computer does not have a central point to access information. A hacker who decides to interfere with a single record cannot go unexposed because the blocks are interconnected, protected by cryptography. The digital signature connected with it becomes void when a record is manipulated, and consumers receive an instant notification, thus protecting the network from further harm.

The influence of blockchain and other fintechs on how consumers interact with banking and financial providers offer smarter, effective, and unique ways that they will drive the sector towards futuristic developments.

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