Future of Blockchain Technology In Banking Industry 2019
The banking industry is very important for the growth of any country. If the banking system collapses, it collapses the entire economy of a country. Hence countries and their central banks take utmost care in protecting banks and financial institutions.
The year 2019 would see good growth for blockchain technology. It would take a vital role in the banking industry in the following ways:
Presently the scope of frauds is very high in the banking industry. This would be efficiently solved by blockchain technology at a much lower cost. With the help of blockchain technology data storage and transmission will be very safe. Banks would be able to decentralize data storage and improve infrastructure in a cost-effective manner.
With the help of blockchain technology, banks can get rid of third-party services for the above purposes.
Presently SWIFT system of coding is used for payments within banks across borders. In future, this will become obsolete and blockchain will be used for the same. Blockchain ensures fast settlement of transactions. Crypto trading apps like Qprofit system have already started using this technology. Click here to learn more about it.
Presently the customers have to give address and identification proofs as per Know-Your-Customer norms. Only after KYC verification people are able to get access to banking services. Also, this has to be done each time, when you open an account with every banker.
Blockchain technology simplifies this. It will identify the user and store the data safely in a server which all the banks can access. When blockchain usage increases in 2019, KYC verification is a one-time process, no matter how many accounts you open with a number of banks.
Presently, loans are the highly risky area in banking domain. Even after background verification, there are numerous cases of loans turning into non-performing assets.
But blockchain will completely make the system fraud-proof. Details of loans can be stored as ledger transactions. All the banks will have access to inspect the ledger transaction. Hence frauds like getting loans from multiple banks using the same property will never be possible.
Other banking services:
Blockchain would have its impact on other services offered by banks. Insurance claim processing is an area which would undergo tremendous simplification due to this. The settlement of claims will be faster, and the formalities would be reduced. Smart contracts would eliminate the need for escrow. Charges would be reduced to a great extent. Hence there is no doubt that blockchain technology will bring in sea changes in the field of banking.