Today, the banking industry suffers from the biggest threat is technology. Blockchain is a technology that has the potential to enhance the transaction process. Plus, it can remove the manual process and middleman.
On this matter, the traditional banking sector faces problems implementing this technology to conduct all banking processes. Today, the financial industry works in an application format with blockchain technology. In this writing piece, we’ll discuss applications and cases of blockchain in the financial sector.
So, keep on reading till the endpoint of this article because here we discuss how blockchain can transform the banking process and increase productivity.
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What Is Blockchain Technology?
It is very important to have knowledge about blockchain technology before discussing its uses in the banking sector. According to IBM, “Blockchain is an advanced database mechanism that allows transparent information sharing within a business network.”
You may know that the financial sector maintains huge amounts of sensitive data which are needed to share within the business process. So, in this case, blockchain helps to store databases in blocks that are linked together in a chain. This technology made the digital banking process successful. Otherwise, we can’t use digital services like digital payment at the grocery store or shopping malls.
In terms of blockchain, it is a system that maintains a record of the database in a way that makes it impossible or difficult to change or hack the system.
How Can Blockchain Revolutionize the Banking Sector?
Let’s take a look at how blockchain technology transforms the banking process all over:
1. Payment Process:
Those days are gone when people stand in a long queue to conduct the payment process. But today, we used technology that helps us to fulfill all types of payment processes at home.
From DTH payments to monthly utility bills, crypto payment people are secure in the blockchain process. This system provides high security and lower processing fees. Through these services, the banking sector improved its customer service process. Let’s see how blockchain improves customer satisfaction.
2. Customer Services:
It can be said that without blockchain technology, we can’t receive digital customer services. In the banking sector, customer service is the most important factor in ensuring the business process and enhancing the business.
Banks depend on customer service. Holding the customer means you need to serve the best quality customer service. In this matter, blockchain technology works efficiently to present data as per requirement. Python developer code this decentralized system to perform the whole process in remote places. Now, we can track our banking data like transaction id, payment details, bank details, etc.
Plus, customers can open an account at home by using the bank’s individual application. This process is easy to conduct. If any customer faces any problems, they can get guided by the application or an executive member of the bank. And, every data is secured by the blockchain system.
3. Loans And Credit:
Blockchain solves many lending challenges that many traditional banks face. In the past, traditional banks offered loans by credit score, while blockchain took a different approach. This system focused on more secure bank loans, peer-to-peer loans, and faster, efficient loan processes.
If any customer needs any loans like home loans, student loans, health loans, or business loans— customers can apply for loans at home without going to the bank. If required, the bank can provide an executive member to guide certain customers.
With a decentralized network system, blockchain makes it more secure. Plus, it reduces loan processing time and rates.
4. International Money Transfer:
Today, international money transfer is easy to use. Most of the traditional banks face issues during international money transfers. It has been seen that when international money has been made, it takes a few days to settle everything down.
But this process is now old. The international money transfer process is now simple. Without taking any more extra time, you can easily transfer money internationally.
5. Online Verification:
In the banking process, customer verification is one of the significant processes. Many traditional banks called the customer for verification, but now this process is not followed.
Using bank individual applications, identity details, and bank details, customers can verify themselves easily. A decentralized network system plays a vital role in conducting this process quickly.
Blockchain can centralize the verification process so that customers will verify their identity once using blockchain.
6. Selling And Buying Assets
Selling and buying assets such as shares and stocks are no longer a lengthy process. In previous times, it took a few times by involving many third parties. But, blockchain systems connect the customer and bank without giving the space to third parties.
So, it can be said that this process has become faster. This process reduces the middleman and creates a low chance of misuse of the information in the whole buying and selling process.
And blockchain influences new customers to be involved in the buying and selling of stocks or shares.
At the end of this article, you now have knowledge of how blockchain revolutionizes the banking process. Blockchain changed the banking industry.
Today, banks can ensure the best customer service in less time. Hopefully, this article has been able to meet your queries. If you have any more questions regarding this matter, feel free to ask in the comment section.
About the Guest Author
Charles Simon is a vibrant, professional blogger and writer. He graduated from the University of California, Berkeley, in business management. He is a business owner by profession, but by heart, he is a passionate writer. Now Charles is the owner and co-founder Of Content Rally, Tech Trends Pro, Rsl online, Real Wealth Business, Online News Buzz, https://uaeuniverse.com, Finance Team, Online Health Media, follow the fashion,