Blockchain has been making noise in the IT industry ever since its establishment. It is said that it’s the perfect solution for better business processes that various industries can utilize and benefit from – and Blockchain banking is one of the things circling around.
In fact, blockchain has potentially transformed the banking industry – numerous enterprises are benefitting from the convenience that blockchain gives. According to some analysts, it helps so much in reducing the inefficiencies that the financial marketplace has today because it can incorporate various advancements that can make the business process in the banking industry seamless and unified.
Moreover, here are some of the major benefits that the banking industry gets from blockchain technology:
Improve the clearing statement
Through blockchain, the record of loans and securities will be handled accordingly. If a bank restructures this area of banking through blockchain, there will be an improvement in the clearing and settlement.
Better payment systems
There are some banks that utilize digital currencies like bitcoin in their payment systems. These cryptocurrencies can control the monetary policy of the industry, hence, waking up the potential benefits of the blockchain technology in their payment system.
Digitalized trade finance
Doing the trade finance on paper is still done at the present – may it be letters for credit, bills, or the like, it is still sent through fax in different corners of the world. And through the modernization of blockchain technology, acquiring information from different parties will be much easier and more secured since blockchain acts as a digital ledger as well.
Fraud is an issue in any industry and as for the banking industry, it’s important to verify the identity of all involved in the transactions – the lenders and customers for example. Banks are responsible for putting all illicit actors and criminals away because this can cause big damage in the future. And blockchain technology promises a cryptographic protection and solid liability to all parties involved; hence, diminishing the risks of fraud.
In the UAE, cybersecurity is an important matter if you want to know more about it, as well as the information regarding Blockchain banking stated above, you can come to your trusted provider of IT solutions so you can acquire all the knowledge you might need.