3 Ways Blockchain Impacts The Banking Sector

Blockchain technology proved to provide great, amazing solutions for the banking industry. It offers plenty of solutions for people who are currently without a bank account or those who have limited possibilities for a credit. The blockchain offers much more and here’s exactly what:

1. Better Record Keeping

This is one of the key elements of why the blockchain is amazing. Records that are stored on the blockchain are immutable. Once data is sent from point 1 to point 2, all of the information is encrypted in the blockchain and cannot be altered. This is great news for banks since they can just forward the block data to regulators and issue a receipt for both parties in the transaction in a matter of seconds. This way the entire process is safer and more efficient. The blockchain can also help in reducing identity fraud and credit card scams.

2. It’s Faster

You already know that making bank payments or bank transfers takes a few days. This is because the technology currently used by banks hasn’t really changed in decades. Also, the bad policies force banks into taking ‘’2-3 business days’’ to complete a task because of the lack of security on their systems. Blockchain, however, makes it possible for banks to process faster and thus cheaper transactions. Private blockchains such as Ripple is currently the best option to do so.

3. Great For Startups

This technology offers great conditions for opening a new, small company. It helps many small companies to solve certain issues in the banking system and improve their efficiency. One company, in particular, named Celsius, works to solve the problem of high cost of borrowing and the low reward system.