Blockchain is one of the most essential innovations in the financial sector since the arrival of money and how it will change the world.
The way blockchain will significantly change the finance sector is the same way the Uber business and the travel industry changed for good.
Distributed ledger technology or blockchain has been increasing massively over the past few years, about $1.4 billion has been invested in blockchain around 2014-2016, and experts have predicted that 80% of the banks will start block chain projects soon as the people keep increasing yearly.
Technology keeps improving every minute soon we will have a flying car and so is with the financial sector so what are you waiting for, join the million-dollar group and benefit a lot without extra charges when a transaction is done, no delays, fraud, and crime but it is reliable and the transactions are faster.
Blockchain is the brain behind the popular cryptocurrency making wave in the world now which is Bitcoin with billions of users because it is valuable and it is not established by the government or banks but by a strong network.
The systems use in the banks and other agencies are so outdated which is making their job slow but with blockchain which is faster because their strong network is the best.
Why the Financial System is so Inefficient
- Our present financial system is inefficient because it’s outdated and has not been improved since all the technologies used are the same for a lot of years now.
- It is also inefficient because the power is controlled by a single authority which makes it hard to change the technology and control the system failure from fraud.
- It also denies people of their rights to access financial aids leading them to extra charges and stress that’s why blockchain is here to correct and save us all.
Impact Of Blockchain In Financial Sector
Secured Money Transfers
A lot of reports have shown that some of the activities in financial institutions like money transfer and stock exchange suffer from fraudulent activities yearly.
Most of these institutions are agents that operate on an authoritative database that is vulnerable to fraud online because it is operated on a single authority which makes it easy for hackers to access the database of the system.
Blockchain is the only solution to escape internet fraud because it has a decentralized database that cannot be hacked so total security is sure. Therefore when a transaction is done on a blockchain the transactions remove the third party origin immediately.
Processing Claims in Insurance
In a financial institution, any action taken has to be back up legally and the issue with paper contracts is that they take time and can be forged easily.
In California, USA it takes about three months to process an insurance claim but blockchain helps you overcome the stress by making your transactions automatic which shows that their insurance claims are fast and secure.
Blockchain reduces fraud and helps you claim your insurance easily with extra security which makes them reliable.
Compliance — Know Your Customer
KYC which is Know Your Customer is the most important thing in all financial institutions to stop crime and money laundering.
In most financial institutions, know your customers is very slow and expensive because different departments have to carry out the test but blockchain reduces all the stress by using a reliable source to gain the information needed and still protect their privacy.
Moving Value of Trading platforms
Some of the institutions are very slow, expensive, and make mistakes every time which makes it easy for fraudsters to hack their database and the global market payment revenue keeps increasing every year.
That is why blockchain is here to increase their efficiency and reduce their costs of operating with them so therefore all your stocks and values are secure with blockchain.
Transforming the Payments Process
Payments in other institutions pass through the means of agents before getting to the authority which increases operational cost, mistakes, and fraud but blockchain excludes all agents and third parties from receiving your payments which saves your time and reduces human mistake.
With blockchain, payment can be made any time of the day in the world which saves you from signing large documents and being swindled.
When it comes to trade processing within asset management it is very demanding and difficult, especially with outside country transactions and loans. This means that all parties involved in the trading process which are the agents, caretakers, the clearing, and settling departments all keep their copy of the transactions which is slow and can lead to human error.
That’s why blockchain is here to make each party have access to all data concerning the trading process which is easier, faster, inexpensive, and no human error.
New Methods of Raising Capital
Back then to start up a business and gain investors is not easy but now it is easy to compare to those years and now through those institutions to raise capital is very stressful because you have to go through many agents, investment bankers, lawyers, and public funding platforms.
The technology of blockchain allows any kind of business to raise funds through various platforms such as global share distributed offerings.
Also with blockchain, everything is easy because they will raise funds and help you gain capital investors which will be safe.
Shopping with Cryptocurrency
In the world today, payments are made through our Atm cards and e-wallets but some still pay in cash, and now blockchain is ready to take over the world by letting people exchange cash for cryptocurrencies like Bitcoin and Daenerys.
A lot of companies have also started accepting their transactions in the form of cryptocurrency which is either Bitcoin.
To convert the Bitcoin to cash, the Kopitiam company will bear the risks of any change in the money while the companies will continue to make their earnings in dollars or any of their currency.
Blockchain is here not to make you worry about having cash at hand but with your cryptocurrency, you are free to shop anywhere in the world.
There are no other words to confuse you about blockchain technology and the opportunity you stand to gain in the financial sector.
Blockchain does not only reduce the costs and stress of transactions among other institutes but also reduce delays, conflict, and take care of your business like their own.
You should realize what good blockchain can do to you now so that your future can be bright and it will improve the future of any financial sector.