Information and Communication Technology How is Blockchain affecting the FinTech Industry?

How is Blockchain affecting the FinTech Industry?

What is FinTech Blockchain?

Blockchain is the technology that records transactions across a decentralised computer network using a shared directory. In Fintech, Blockchain handles and regulates digital transaction information and prevents duplicates. The integration of this technology ensures real time payments for assets with an immutable state and digital identity, which means that various financial institutions and banks have significant cost reductions in reconciliation and settlement. The increased demand for regulated trading platforms and the increased needs of faster, cheaper and cross-border payment systems are significant drivers of the expansion of the blockchain sector in FinTech.According to Accenture, blockchain can let banks to process payments faster and more accurately while decreasing transaction costs and exceptional requirements, if applied effectively.

Types of Applications:

  • Payments, clearing, and settlement

  • Exchanges and remittance

  • Smart contracts

  • Identity management

  • Compliance management/Know Your Customer (KYC)

How Business and Fintech Industry Can Benefit from Blockchain?

Blockchain is becoming more popular as people realise the underlying strength of the cryptocurrency system. It changes the manner of making transactions.

As a Blockchain has property, the data in the Blockchain can not be edited or removed. You must not rely on third-parties for verification with Blockchain.

Customized digital experiences and digital goods are changing the landscape of financial services by increasing the digital transformation of the financial industry. Digital banking technologies like digital banks, billboards, blockchain technology, and customer service automated chatbots are some examples of rising demand as they improve overall operational efficiency, provide reliability in time, reduce processing times and achieve the same level of confidence in traditional processes. Digital banking technologies are more important than others.

As technology like IoT is rapidly advancing, the amount of data generated by many linked devices is growing by multiplicity and so requires a great deal of data-managing technologies. By blockchain, insurance companies may manage broad and complicated networks securely by allowing devices to connect and manage one another peer-to-peer, rather than by creating a costly data centre to handle the processing and storage load.

For a deeper dive, buy a complete report:

FinTech Blockchain: 59.7% CAGR

Projected Revenue: 35.45 billion from 2020 to 2027

Full Report:

Conclusion: Blockchain assists with the Internet exchange of values without a supervisor. FinTech Blockchain has the potential to transparently, efficiently and safely alter a variety of sectors. Some financial actors are the first to use this technological infrastructure. Several governments and industries are awakening to this technology's disruptive potential. This technology widens the collection of app-based services from consumers to cross-border transfers of insurance products.

Published Date : July-2021