Development of Blockchain created so many substantial changes in the banking and other financial sectors. Blockchain may be the revolution of the financial industry and also impacting financial services globally. As there are so many financial institutions which are accepting Blockchain with open hands, we can say that in this world of changes Blockchain will defiantly become permanent in the financial sector. There also some obstacles on the way of Blockchain which needs to be fixed by the technology to become the standard in the business world.
The technology is already establishing itself in the sectors of money exchange and keeping the record of business transactions. The experts believe that technology will soon make its goodwill in all the industries in the world. We must know what factors are due to which the technology will impact the financial sectors?
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- It will make banking safer and quicker
Nobody in this world wants to waste their time in long queues of the banks to get their job done. Everyone wants quick responses and also want their work to be done as fast as possible. Blockchain is working to fulfill this requirement of the customers. If Blockchain is used by any financial organization to perform their jobs, then the customers will quickly transfer money from one account to another in a fraction of seconds. Isn’t it fantastic, think about a system where you don’t have to stand in queues and wait for the success of the transaction? This is the biggest thing which Blockchain will do with the financial systems.
- Just a start to eliminating frauds
With the expansion of Blockchain, it is believed that the frauds will come to an end. Here I am talking about the scams related to money like money laundering, hacking attacks on the banking applications, etc. This will happen due to the technical way of storing information and transaction records. As we know blockchain stores the information and transaction records in the form of scripted language with the help of cryptography. Being in the secret language; it will not easy for hackers to break the system. Also, developers are experimenting more ways to close all the loopholes left in the system. If this will happen then blockchain will become the first safest system in the world.
- Banks don’t need to hire more staff
As we see in traditional banking, there is a lot of staff members in the bank for different purposes. Now if we talk about Blockchain everything will happen with the help of digital applications there will be no need for more staff. Banks have to maintain the digital system, and the customers can make the transactions from their end. The technical network itself will also do storage. But yes staff is required if someone came to the bank to make some inquiry, to open an account, to do some paperwork, etc. This is also risky if we see from the employment perspective. If we check the facts, then you can see that there are so many people who are surviving only from their bank services and if they will get unemployed how they will survive in this world.
- The power will remain in the hands of customers
The motive of the Blockchain is to make the customer king. If we see in traditional banking people are dependent upon the bank’s, and they had nothing to do with the services of the bank. But here in blockchain, the bank is acting as a place from where the network will going to operate. And the customer will decide what to do, and when to do. They can invest their money online without visiting the bank for paperwork, they can transfer their cash beyond the borders without any delay, and they can deposit money in their accounts without worrying about the bank’s closing time. But they have to go to the bank to make them a part of the blockchain system first.
- Blockchain will improve supply chain
As we know the business works with the supply chain, so with the Blockchain development services, you can quickly identify which people are working for your organization. There is always a hidden, or I say unknown factor where the owner doesn’t know much about their supplier like promoters, distributors, exporters, etc. Blockchain helps you to connect with everyone directly through the network. This will happen with the help of two services of Blockchain first is Know your customer and the second one is no middle man. When the middleman will get eliminated the owner of the organization can directly connect with the members of the supply chain. And to get all the information about everyone in the supply chain. Know your customer is the best option for them. The thing is, it is dependent upon the owner how they will use the technology for their benefit.
In the end, I only want to say that Blockchain is a big hit in technology. As it is growing the things are getting better. Also if the financial systems reject it, they may suffer significant losses. On the other side, it can be the end of employment in the banking sector because if the technology is handling everything, there is no need for the staff members in the bank for different jobs. Also, Blockchain will make the system faster and safe. People will not hesitate to make their transactions online.
According to my opinion if the industry will give Blockchain a fair chance to grow then the traditional as well as the modern section of the industry will grow parallel and if they will not then I am sure the technology is strong enough to grab a chance for its own. So, Blockchain is the future of banking. If you have inquiries, questions, and suggestions, then please feel free to discuss in comments. We are always ready to take comments from readers. For more exciting and new facts about the technology, please stay tuned.