The global blockchain market is expected to reach $60 billion by 2024, according to a news report published by Blokt.
Blockchain technology has come a long way, with more businesses in different industry sectors bracing for the disruption that it’s expected to bring.
In fact, over half of all top managers in the finance industry admit that blockchain technology will play a key role in the success of financial and banking institutions in the near future – and this will come with over $20 billion in savings by 2022 through proper implementation of blockchain.
There is no doubt that blockchain technology is set to revolutionize the banking and finance markets.
But the question is: How exactly is this disruptive technology impacting financial services?
Banks are Embracing Blockchain Innovations
Some banks are currently working on ways they can use blockchain technology to facilitate various banking transactions such as faster money transfers internationally, bank deposits and withdrawals due to its speed and accessibility.
Blockchain technology offers instant verification of transactions and can also be used by banks to give clients specific information about their deposit investments and when interest payments come through.
The technology also enables automatic business transactions and the application of decentralized assets through smart contracts or agreements. As banks continue to explore ways they can use blockchain technology, the only challenge lies in developing strong regulatory frameworks.
Eliminating Fraud in Financial Transactions
Blockchain has the potential to eradicate fraud in financial transactions by eliminating the intermediaries. The technology is presently used in trading financial securities. Blockchain increases trading accuracy with shorter settlement process.
It eliminates middlemen such as brokers and the stock exchange itself. It is the future of the financial sector. With the financial sector having a high fraud rate, blockchain technology may be the right tonic to it.
Future of Blockchain in the Financial Sector
Blockchain is just getting started as a technology, and the future is bright and exciting. The technology bears immense potential for upending the world of finance.
Indeed, the ability to move money and make transactions without a central banking authority is compelling. It’s one of the primary functions the blockchain was designed to facilitate. The financial market is vast and involves numerous bureaucratic processes that often tend to be costly and time-consuming. Blockchain technology can change that.
Based on its robust infrastructure and timeless potential, many financial institutions and stock markets are adopting blockchain technology. The growing adoption is largely due to its power to transform the way clients conduct online business in the financial and banking sectors by providing absolute safety, security and transparency.