Have you ever thought that Blockchain technology can help in the banking sector? Do you know few of the banks are already using this technology to streamline their processes? Blockchain technology, which is based on DLT (Distributed Ledger Technology) is the fundamental foundation that can generate shared digital databases of the unalterable entries.

Key Benefits of Blockchain Technology in Banking Sector

Banks are considering the blockchain technology for various reasons and one of the major reasons is cost saving and efficiency. These are the major advantages of opting for Blockchain banking:

Cost Savings & Productivity: The strengths of Blockchain are beneficial to the banks which are struggling with the rising cost of retaining or substituting their aging infrastructure & guaranteeing compliance with the heavy regulatory burdens. Moreover, banks must handle the growing economic instabilities. According to Santander, Blockchain-based resolutions could create cost reserves of up to $20 billion/ year.

The strengths of Blockchain are beneficial to the banks which are struggling with the rising cost of retaining or substituting their aging infrastructure & guaranteeing compliance with the heavy regulatory burdens. Moreover, banks must handle the growing economic instabilities. According to Santander, Blockchain-based resolutions could create cost reserves of up to $20 billion/ year. Compete with Technology-Enabled Organizations: Today, Fintech startups are accessing Blockchain technology to offer services like remittances & international payments at reduced costs, with higher speed by utilizing a more user-interactive interface as compared to major banks. Consequently, banks are making efforts to develop their own Blockchain-based solutions to compete with these startups.

The Scope of Blockchain in Finance and Banking

The obvious application of the Blockchain in finance in future is via cryptocurrencies, like Bitcoin. From the time of its creation, Bitcoin has gone through its share of ups & downs, crashes, and surges. However, its boom in 2017 is undeniable and it is very logical that why the Bitcoin could be attractive to financial institutions and investors. Nevertheless, for utilizing Blockchain technology for banks, it is important to keep certain points in mind:

Narrowed Attention: Numerous banks have started to emphasize the Blockchain efforts on the schemes that will be substantially useful to their business. This is expected to be an effective tactic than a wider, catch-all method.

Numerous banks have started to emphasize the Blockchain efforts on the schemes that will be substantially useful to their business. This is expected to be an effective tactic than a wider, catch-all method. Fewer Applicants Per Plan: Consequently, because of the pointed focus, organizations should reorganize their methods to their Blockchain plans to produce quicker outcomes.

Consequently, because of the pointed focus, organizations should reorganize their methods to their Blockchain plans to produce quicker outcomes. Collaboration with Controllers: The solutions based on Blockchain that are being developed for the banks might be similar to the current solutions with the regard to the regulatory compliance. However, the financial companies will need to ensure that lawmakers know how these fresh solutions work to gain their sanction.

Blockchain technology in banking is one of the emerging solutions to complete multiple tasks in quick and secure manner. Therefore, it is very crucial to opt for an organization that provides you the best services and guide you properly on Blockchain. Sofocle Technologies is a Blockchain development and consulting company that has the expertise in developing Blockchain-based solutions. To know more about the services offered by Sofocle, drop an email at success@sofocle.com