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The Advance of Blockchain into the Banking Industry

Blockchain is now all around us, and it’s taken up a major presence in many areas of our lives. This is only going to become more and more true in the future, making it important to stay in touch with this technology for those who want to make the most of their finances in the future. That’s because finances are the one area that’s been especially heavily impacted by blockchain.

And while it’s hard to predict how things will look in the future, one thing is clear at this point – those who take the time to familiarize themselves with blockchain now stand to benefit a lot later on. Banks have already started to adopt this technology at very rapid rates, and it’s interesting to see how they’ve been utilizing blockchain in their own work.

Easier Clearing Operations

Clearing and settlement remain complicated issues in banking, and wrangling the mess that sometimes arises on that front can be a huge challenge. Blockchain has stepped in to significantly simplify the process in multiple ways. Various estimates indicate that banks have been able to save a lot of money on their clearing procedures by implementing blockchain technology on a deeper level. And it looks like this situation is only going to improve in the future, judging by the way things work right now.

Improved Payment Systems

Many banks are also playing with the idea of using alternative payment systems to cover their transactions, sometimes even in areas that have nothing to do with payment on the surface. This is another field where blockchain has proved quite useful, and we’ve already seen some significant advances as a result of the proper implementation of blockchain technology.

And the best part is, we’re only seeing the tip of the iceberg here. It’s very likely that we’re going to see even more progress in the development of payment systems in the near future, and there’s already a noticeable trend for companies to invest a lot of effort and resources into addressing problems in this field.

Customer Verification

Knowing who a bank is working with is also still a major issue on the table for many institutions, especially those that work online. The internet has made it easy to conceal one’s identity and present a different one to institutions and other people, and this has started a rather worrying trend. Whether we’re going to see things relaxing on that front is hard to tell. But for the time being, banks are becoming much stricter in their approach to customer verification.

Blockchain has made this possible to a large extent. It’s easier than ever to verify certain aspects of a person’s identity, and many banks have started to take advantage of that in their work as well. It will probably take a while until we see the technology properly taking over the market on all fronts, but once this happens, it will be a true revolution for safety and security.

Advanced Loan Products

Last but not least, banks are now able to offer much more attractive loan products compared to before, and it’s not rare to see great deals in this corner of the market on a regular basis. Services like Moneezy have cropped up to simplify the process of comparing these deals and getting the most out of them, and we’re probably going to see even more similar developments in the very near future. Customers have started to show a lot of interest in getting the most out of their loans and have started to display a much better understanding of how loans work in general, so it will be interesting to see how well banks are going to adapt to this in the future.

And of course, those who take full advantage of this situation right now are the ones who stand to benefit the most in the future. Blockchain is still a developing technology, and it will likely take some time before we see it properly integrated into the work of society as a whole. But once we’re there, those who’ve started to explore the technology from an early stage will be the ones with the best earning potential.

With all that in mind, it’s important to keep track of blockchain as it moves through the markets, and to pay attention to the implications it has on various technologies and systems. Banking is one of the fields that stand to see the most change as a result of the integration of blockchain, and we’re likely going to see a very exciting future in this regard.

However, the complicated nature of the technology also makes it important to stay in touch with trends in that field from a closer perspective, something which people often underestimate the importance of, and end up suffering as a result once they realize their mistake after some time.

 

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Comments: (1)

Ambrish Parmar
Blog group founder
Ambrish Parmar - Digital Strategy and Transformation Director - London 17 June, 2019, 14:41Be the first to give this comment the thumbs up 0 likes

Hi Amy

Thank you for posting - highly relevant subject. Ambrish - Group Founder.

Amy T

Amy T

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This post is from a series of posts in the group:

Banking Strategy, Digital and Transformation

Latest thinking in respect to Banking Strategy, Digital and Transformation. Harnessing our collective wisdom to make banking better. Ambrish Parmar


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