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4 Ways Finance Industry Can Take Advantage of Blockchain

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Blockchain has created a buzz in almost every industry. The world resisted the change but overcoming all the friction, technology advantages of Blockchain created footprints everywhere.

Moving the landscape of finance and its ecosystem, Blockchain brings in the advantages of higher speed and lower fees to the inefficient financial system in place. Loathing with frauds, scams and redundant operations, the current financial system is centralized and liberals are looking forward to bring in decentralization since long.

A wave of digitalization has always transformed financial service industry by offering infrastructural and procedural changes. Let us understand the 4 best ways finance industry can be benefited by blockchain as it is more than just cryptocurrencies:

– Fraud reduction

In America alone, the banking industry suffered $2.2 billion in 2016 due to frauds. Electronic transactions are being hacked, leading to a rising pile of fraud. Blockchain is resistant to such frauds as the decentralized ledger can neither be deleted nor altered once the transactions are validated and recorded. The existing financial system in place has become sluggish despite electronic transactions as the risk of frauds is slowing down the system. With Blockchain App Development, not only will the frauds be curtailed but the speed of transfer is going to be almost instantaneous. The blazing fast speed is rendered to the financial transactions because blockchain ecosystem eliminates the need of a broker. As the transaction always happens between the end to end parties, speed is better and frauds are controlled.

– Efficient Contract handling

When we said, Blockchain is more than cryptocurrencies we meant the smart contracts that carry the digital information of a contract and its term in a secure manner. This reduces the frauds, time and documentation that goes into when contract conditions are met. With blockchain, once a contract is converted into a smart contract, it auto-executes when the conditions are met.
The blockchain reduces the risk of fraud significantly and at the same time, eliminates the operational errors for contracts such as lease documents, property documents and more.

– Cheaper Banking

In case, a fiat owner wishes to transfer dollars to India, there are so many intermediaries involved that the transaction fee skyrockets. Blockchain technology brings around an efficient and cost benefiting solution to global transfer of funds as cryptocurrencies.
Even the banks have admitted the advantage that blockchain technology brings in cheaper and speedier solutions. Without any kind of bureaucracy involved, it brings in a free economy that is secure and efficient.

– Increased Financial Solutions

Cryptocurrency is working as a parallel economy. Proving itself as an interesting and innovative financial solution, Blockchain Application Development is securing the way of living independently of the economic state of the government.

Conclusion

Advancement in technology is augmenting the growth of Blockchain use case for financial sectors. The demand for blockchain is about to spike in the financial institutions as the need for secure transactions is rising. April 2018 recorded establishment of 2191 blockchain startups and as the adoption is increasing, the growth of Blockchain organizations is going to expand 42.8% in next 2 years. The potential of blockchain is fueling the growth of financial institutions in a non-traditional but better way.

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