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The Financial sector is booming with blockchain technology

12/06/2020

The Financial sector is booming with blockchain technology

Blockchain technology has been considered with so many other applications due to its unique features consisting of decentralization, transparency, immutability, and security. Such distinctive attributes like these are precisely favorable in the case of financial industries.

Issues that can reduce the process of workflow in financial sectors may have a knock-on effect on the companies as well. Blockchain technology can provide a massive acceleration to the commercial area use cases while providing support to the financial sector at the same time.
 
With the continuous growing industries, the problem areas need to be taken care of properly before it falls apart. Hence, the specific used cases are described below.
 
Recognition of customers and business, KYC & KYB –

The financial organizations initiate client engagements. Hence they are bound to focus on the increased budget that KYC requires. And no doubt the process swallows the time like nothing else. With blockchain, customers could have a golden record of sorts that could be used instead of KYC or as a form of identification.
 
SME and credit scoring threats- The Small Medium Enterprises (SME) are facing challenges on lending from the banks as the returns of equity shorten in the past years. Its building hurdles to small-medium enterprises and wealthier businesses, making the trust to meet the banks' credit return challenges for most. Blockchain secures the sharing of those data and information from different lenders and reduces the hassle of credit scoring risks.
 
Consequences of insurance claiming process- it seems that the traditional insurance claiming process is full of difficulties and time-consuming. Blockchain technology streamlines and secures the whole process, including real-time data updates, and increases the claim process's capability. Resulting in faster work within less time and provides the appropriate expected ending. The smart contracts accelerate the payout under safe grounds.
 
Reduction of scamming- Some studies say that staggering 42% of commercial bodies are under suspicion related to monetary felonies. Blockchain creates a secure decentralized system that is non-corruptible. Hence, the chances of cyber scams and threats to financial services are greatly lowered.

Conclusion

Blockchain technology and its many varied solutions will become part of the financial and banking sector's normal operations. Many have already started using blockchain and digital ledger technology, with commercial applications being released all the time now.

To keep ahead of the latest developments, Blockchain Software is here to help you, just contact us today to find out how.


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