The banking sector is well organized and strictly regulated in all aspects. With the overwhelming popularity of blockchains, cryptocurrencies and ICO’s, many banks and various financial organizations agree with the potential of blockchain technology. In recent years, large banks are regularly trying to test decentralized asset technology, and they have been trying to implement blockchain in business processes. Banks have started investing in many start-ups which are focusing on developing blockchain based solutions.
Accenture, which specializes in strategic planning has conducted a study which shows that more than half of all the managers in banking and financial sectors have agreed to the fact that blockchain is going to be an essential part and is going to play an indispensable role in the success of banks and financial companies in the future. Accenture has also come with a figure that the world banking sector will be able to save up to $20 billion by 2022 through the implementation of blockchain.
Today’s banking system is traditional and is highly dependent on paper and outdated processes. Banking sector needs to be revolutionized by using upgraded technology which can withstand security issues and frauds. Blockchain is a technology built to decentralize the market. This quality of blockchain can give the banking sector the modern-day solution it needs.
Banks involve intermediaries in every transaction made with the organization. This is making the banking system dependent and slow. The rate at which the money is transferred on a global scale takes up to 5 working days yet, involving risk.
With the introduction of blockchain technology in the banking system, transfers in international scales will become a job of few seconds and risk involved will be disseminated. Blockchain system is self-sufficient, secure and reliable.
Living in a digital world, use of checks and drafts have become minimal. People prefer making online and digital payments for minute things. With a current growth rate of economic activities, it is but obvious that this rate will only grow further. Small digital transfers will become feasible, fast and cost effective with the implementation of blockchain technology.
Technology is the key to survival in this ecosystem. Many financial organizations are adopting blockchain technology to secure the markets by providing economically available services at a cheaper rate as it is the need of the hour in the financial sector. The Banking sector needs to uplift its technology in order to secure their place in the ecosystem.