Did you know that it is predicted that in the year 2021 and moving forward more than half of the financial institutions will acquire Blockchain technology systems?

In simpler words, Blockchain would be a type of database that contains a digital recording of all transactions that are put into one big ledger. This is seen as a replacement to the traditional and manual recording of transactions and this type of database has various purposes.

Now, let us talk advantages:

  1. Reduced costs and faster transactions; block-chains aim to remove intermediaries and middlemen in the data recording process this can lead to a decreased amount of spending for banks which enables them to focus more on their internal activities. This also means that since it is a technological system that is decentralized more tasks and processes will be completed in less amount of time.
  2. Security is drastically improved; since it is a ledger that nobody can administer this means that there is a lower chance for it to be altered or changed. Thus it would be able to protect itself from theft and aim to predict and prevent fraudulent behavior.

 3. Compliance; allows for complete transparency and eases the auditing process substantially.

 4. Reduced human errors; since the block-chain is one of the industry’s most cutting-edge technological systems, the chances of any human errors occurring is very low. This also allows for easier traceability when it comes to any detection of issues or problems as it would be able to identify it before the transaction is completely leading to more accuracy overall.

How Blockchain systems benefit the banking and the Fintech industry?

  • Better services.
  • Enhance data security systems.
  • Focus on core banking systems rather than tracking systems.

The fact is that blockchain as a technology is inevitable and will be taking the banking industry by storm, this is not about riding the wave but being ahead of it. The sooner you apply Blockchain technologies; the you will be taking your first steps into the future of Fintech.

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