How Blockchain Can Influence The Financial Services Industry?

financial services industry

Money is one of the most precious assets for every human on this planet. And banks and other financial institutions are something who handles every person’s earnings to a great extent. But, what if someone makes a lot of money through their job or business, but fails to leverage the potential benefits of their bucks? Yes, that can happen if the banking or financial institution who keeps their money doesn’t handle it well and any sort of fraud occurs next. 

So, the question comes, what can a potential financial service provider do to manage the dollars of their clientele without any hassle? Well, they can incorporate Blockchain technology into their systems. Yes, you read that right! But, who can help them in making such changes to their systems? Well, that’s where a Mobile App Development Company comes into the frame. 

Yes. If you own or operate a bank or any other financial institution for that matter, all you need to do is to get in touch with a highly acclaimed Web App Development Company and ask them to build a blockchain-powered application for your target devices. 

Only when you do that, the chances of the occurrence of fraud or scam in your banking organization will reduce to a great extent. Resultantly, your patrons using your web app or mobile app will face fewer or no issues while transferring their money to the concerned person or performing any other similar task. 

But, to avail such facilities, first you need to partner with a leading Mobile App Development Company out there. Apprehended? If so, it is time to take a sneak peek at:

What is Blockchain?

Blockchain is a globally popular technology that ensures the desired information is shared among different stakeholders safely and securely. There is a database that stores all the data of consumers and the transactions done by them are recorded in an account book, commonly known as a ledger. 

And blockchain is a sort of distributed database or ledger and the ability to update it is distributed between different authorities, like nodes or participants of a public or private computer network. 

Thus, this whole concept is known as a Distributed Ledger Technology or DLT. What else? When it comes to updation, nodes are incentivized generally using digital tokens or currency so that they can update blockchains. Now, coming to the next Q&A i.e.,

How can blockchain impact the whole banking and financial services industry?

First up, you need to perceive one thing that core banking operations comprises:

  1. A battery of transactions 
  2. Loans
  3. Mortgages 
  4. Payment services 

Most of these services are highly dependent on the legacy process of whole execution. For instance, suppose that if someone wants to get some debt at the moment. In that case, their information verification, credit score check, loan processing, and distribution of funds will take anywhere between 30 to 60 days for an individual. 

However, as far as small or medium size organizations are concerned, their loan application might take anywhere between 60 to 90 days to get processed. And that’s where blockchain technology can play an instrumental role. Wondering how? Well, it can:

  1. Streamline the whole banking and lending facilities big time
  2. Minimize counterparty risk
  3. Drive down issuance and settlement times 

Not only that! If you hire a Web App Development Company straight away to create a blockchain-driven banking application, it will also allow you to:

  1. Authenticate documentation and KYC/AML data which will decrease operational risks further and also ensure real-time verification of finance-related documents 
  2. Automate syndicate information, underwriting, and disbursal of money to the targeted customer. It means principal and interest payments of the borrowed amount, mitigating cost, delay, and friction of syndication 
  3. Streamline credit prediction job of professional bankers and credit scoring markets that are quickly informed with the help of the collection of user activity and sanctioned data across the whole network
  4. Facilitate gathering of assets since digitization makes for real-time asset management, tracking, and most importantly, enforcement of regulatory controls 

So, if any of the above pros of a blockchain-inspired banking app interests you, it is in your best interest to reach out to a cutting-edge Mobile App Development Company now and then assign your desired app creation task to them. 

WIth that over, it is time to peruse the subsequent text stack, i.e.,

What is the use of blockchain in the financial service industry from the POV of a Web App Development Company?  

If you give ears to the opinions of some industry experts out there, you will learn that blockchain could be the next big technology that will translate into more efficient, secure, and promising banking services. 

Do you want to know why? Well, considering the recent substantial growth, the cryptocurrency market has now become worth trillions of US dollars. Yes. And you will be surprised to know that a big part of this success comes from all the possible uses of its underlying blockchain technology. 

But the reason? To be honest, blockchains were first introduced to the entire world with digital currencies, which makes some sense that blockchain-based finance applications developed by a Top Mobile App Development Company is one of its handy uses. And since you already remember that blockchain is a decentralized ledger that stores all transactions, this technology could be a path to achieve: 

  1. Faster and cheaper transaction goals
  2. Automated contracts
  3. Higher security

Lastly, as far as the usages of blockchain in the banking service industry goes, they are:

  1. Secure money transfers
  2. Additional transaction security 
  3. Automation using smart contracts 
  4. Consumer data storage 

Hence, if you want to fetch all the above benefits from a blockchain-powered banking app right off the bat, we would suggest conversing with a verified representative of a state-of-the-art Web App Development Company and get their team to work on your banking project. Understood? If yes, it is time to pay some attention to:

The end note

Now that you went through complete prose, we hope you wrapped well your mind around the significance of blockchain technology in the finance industry and how it can influence this industry with its capabilities. 

So, if you loved acquiring the essential information about blockchain technology and professional banking services, please look no further to a top-notch Mobile App Development Company to build a blockchain-driven banking application for your firm.