These companies are making banking simpler by investing in the possibilities of blockchain.
Written by Sam Daley
The banking industry is realizing the power of blockchain. Unburdened by centralized authorities (like banks), blockchain makes it easier for currencies to be traded, loans secured and payments processed, all of which make it a worthy alternative to current technologies in the industry.
The well-worn blockchain-versus-traditional-banking trope usually pits a mysterious, understudied technology against the proven behemoth that is our current banking system. In reality, blockchain can solve some of the banking industry’s most pressing problems. Originally used as the secure decentralized payment ledger for Bitcoin, it has a track record of making processes more efficient and secure — especially in finances.
Blockchain’s ledger technology has the ability to quickly and cost-effectively process banking payments, act as an anti-money laundering monitoring tool and even offer alternative options to measure creditworthiness.
According to a study by Deloitte, rising costs, increased cyber attacks and global payment processing cost the finance industry billions of dollars annually. Distributed ledger technology, like blockchain, can enhance traditional banking methods, including upgrades in international payments, securities trading, loan offerings, credit monitoring and fundraising. The same study emphasized the need for banks to embrace blockchain’s immutable smart contracts, real-time finance tracking and dispute settlement technology in order to differentiate themselves from the rest of the banking world.
Below are examples of how companies are using blockchain to improve banking.
