It is hard to deny the shortcomings of today’s financial sector. Not only a large percentage of our population underserved but those who are at a higher risk of fraud and crime.
The financial services, like stock exchanges, money transfer services and the like have a high rate of economic crimes annually. The reason behind this – the use of paper-based processes and industrial technologies. Blockchain eliminates these problems, plus makes it so banks can better serve diverse communities.
Blockchain will more than likely disrupt financial services that relied heavily on the unbanked and underserved customer base. Blockchain is the technology that will more than likely change the future of banking and how we do finance. This is especially true if Bitcoin and other cryptocurrencies become the preferred choice for global economies.
The finance industry is taking notice of blockchain and the potential impact it will have on its future. Whether banks love it or hate it, they’ll be forced to play the part.
Blockchain technologies provide a more secure, convenient and affordable way of banking. And this idea alone is what’s causing a stir, especially in commercial banking. Some banks are looking to build systems that reduce how many participants involved in each transaction.
Then there are others investing in blockchain startups and partnering with fintech companies that are incorporating blockchain.
Notables worth mentioning include Goldman Sachs, UBS, and Morgan Stanley, which have all released research surrounding the technical details and theoretical use of blockchain. The large banks have the resources to pull forward with developing large-scale blockchain financial projects.
These global entities are already patenting their own blockchain systems or their own underlying technologies. The race is definitely on for those in the financial sector to get on the blockchain gravy train.
Blockchain for sure will be disrupting the financial sector, bringing in the needed efficiency and cost- effectiveness.