blockchain and fintech - a good match?

Blockchain and Fintech – A good match?

Today’s trending technology, Blockchain, has the potential to transform the way the world approaches big data with better security and data quality. Blockchain has some very useful applications in various industries, and now banks are increasingly interested in this technology as well. Blockchains are essentially new technology layers that rewire the Internet and threaten to side-step older legacy structures. Trust is the center stage of the blockchain network which has the ability to potentially remove any intermediaries and/or disrupt their current operating models. The blockchain framework has the ability to virtually record everything of value and it will challenge and disrupt the present centralized business models and has the potential to revolutionize the financial services sector.

The current financial system is very complex and that complexity creates several risks. A new decentralized blockchain financial system could be much simpler by removing the layers of intermediation. This system could help increase the cooperation between banks and cement trust as well as integrity at the core of the system.

Due to a high number of risks associated in the process, conventional financial transactions are often quite costly. With the advent of blockchain, the banking sector can achieve many benefits such as lower transaction processing times, cost savings, and fraud detection. The analytics process, when combined with blockchain, adds a secured data layer thanks to the security of blockchain. Financial institutions can now identify risky fraudulent transactions in real-time in order to prevent fraud rather than analyzing records after the fraud has already occurred.

Blockchain technology holds great promise for finance organizations, including quantitative and qualitative benefits.

There is no way of knowing where blockchain technology will lead us in the future. However, what we do know is that the adoption of blockchain technology is gathering a lot of momentum. Trustworthy, transparent and immutable, blockchain technology is here to stay and it will surely redefine many aspects of the financial services sector in the near future.

Harvard Business Review made a claim that blockchain will do to banks what the internet did to media. When it comes to banks and financial organizations of today, blockchain has the potential to solve a lot of significant problems. Blockchain technology readily possesses all the characteristics required by a reliable technology involving financial matters. It is safe, secure, decentralized, transparent as well as relatively cheaper.

Blockchain has the ability to provide a very high level of safety and security when it comes to exchanging data, information, and money. Blockchain technology will also allow users to take advantage of the transparent network infrastructure along with low operational costs with the help of decentralization. All these characteristics make blockchain reliable, promising and in-demand solution for the banking and finance industry.

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