Emerging technologies are changing the way businesses are done, and shifting demands of customers give rise to a variety of new ideas, products, and services in the market. One of the emerging and most promising technology is blockchain technology that will not just transform financial services but other various businesses and industries. Financial institutions and banks are continuously working to embed the culture of innovation and technical progression across the organizations. Companies necessitate to shape or adapt emerging technologies that bring new transparency, simplicity, efficiency, trust, and enhanced customer experience.
Finance and banking sectors move billions and trillions of currencies around the globe every day, increasing their cost, labor, and their dependency on paper documentation is time-consuming. Apart from these problems, centralized systems are always at high risk of cyberattacks, frauds, breaches, and many other issues like:
Blockchain technology has enormous potential to disrupt the financial and banking sectors/industry. With its broad-implications and unique potential, fintech is ready to revolutionize the world. Digital identity, digital money, and digital diligence are the three pillars of the future economic system. Benefits of Fintech revolution:
World Bank estimates that around 1.7 billion people worldwide lack access to even primary banking services. Now the internet and mobile phones can solve the problems of unbanked people through decentralized digital currencies. Emerging technologies like AI and blockchain can provide a decentralized global account to benefit essential financial services. Blockchain technology in fintech is making financial inclusions easy to accomplish.
Efficient and effective process triggers a robust system that reduces operational cost, transactional cost, and infrastructure costs.
Provides access to full transaction history in a single shared source of truth. Digitization guarantees data decency and facilitates asset provenance.
Chatbots are replacing call-centers, resulting in intelligent insights and value-added experience for users.
The champion in the fintech industry will be that organization that uncovers innovative ways to add biometric identifying security systems without compromising user convenience.
By the end of 2020, more than 50% of all online searches will transform into voice-based search. Financial institutions and banks are integrating their products and services with voice services like Siri, Google Assistant, and Alexa.
In today’s world, transferring funds from one party to another party across borders is full of intermediaries. These intermediaries go through banks, credit card companies, trusted parties, and much more, making the transaction expensive and time-consuming at each step.Corporates and banks are planning to use blockchain technology to make cross-border fund transfer along with the real-time settlement and reduced cost by optimizing liquidity and eliminating reconciliation.
In the world of business and trade, faith plays an essential role around the globe. Many times we experience transactions getting stuck from 24 hours to 7 working days due to issues like transaction limits, verification process, and thus results in bad business reputation. Blockchain solves all these problems and empowers users to use cryptocurrency in exponential ways. The immutability and shared ledger system of the blockchain network provide confidence in data integrity and reduce opportunities for fraud.
Fintech has sparked the insurance sector with a big boom. As customer’s preferences keep continuously changing and expect a more efficient and convenient system, we require thriving technologies that will shape the future of insurance. AI, fintech, and Blockchain networks can help the user to remind the expiring policies, renewal process, expedite insurance claims, assisting firms to reduce the time-consuming processes like paperwork and vetting among the hospitals. By smart contracts and blockchain interoperability, insurance firms and partnering hospitals could automate health claim arbitration.
Banking consists of loans, mortgage, payment services, and transactions. Blockchain can streamline banking and lending services to achieve real-time verification of financial documents, automated syndicate formation, underwriting, and disbursement of funds.
Blockchain offers various benefits like the elimination of a center point of failure through the decentralized system, the facilitation of capital market activities simplifying processes, reducing cost, and decreasing settlement times.
It takes 2 to 7 days for global payments and remittances today and several intermediaries’ exact toll for their services. Blockchain emphasizes real-time gross settlement within independent banks, commercial banks, and central banks.
Blockchain enables efficient and effective governance by digitizing the whole trade finance lifecycle and reduces counterparty risk, fraud, or any human error. Formulating dynamic financing structures through the shared network and asset digitization enhances swift settlements.
Blockchain technology issues customizable assets and streamline compliance, onboarding, asset servicing, lifecycle management, and distribution.
Every industry wants to know the likes and dislikes of Generation Z or Centennials, which is 32% a large chunk of the global population. Gen-Z will be the first generation that never works offline. They want creativity, freedom, meaningful roles, technical solutions, interest in real skills, and responsibilities. One thing is sure about gen-Z, they are in love with online gaming, and blockchain-powered games are offering various ways of earning and multiplying their digital currencies through exciting gameplays.
Blockchain technology works on Peer To Peer network where no central authority exists; thus, every node stores, transfers, and receives files. It also provides more overall protection than traditional client-server systems. Due to the lack of central points, it will take more than 200 supercomputers combined with hacking a network.
The World Federation of Exchanges evaluated the complete worth of stocks traded across the world as around $78 Trillion, and the market is expanding and becoming more complicated by the day. Thus major stock exchanges are reviewing blockchain for its potential to allow real-time settlements and automate compliance through smart contracts, with higher levels of protection and clarity.
The concept of industrial blockchain and its fusion with artificial intelligence holds the power to generate a massive potential for optimized growth. Financial institutions, as well as emerging businesses around the world, are exploring new ways to blend with blockchain technology. More than 90% of Banks across the globe are planning to adopt a blockchain solution through digital transformation and other modern methods by the end of 2020.