With the Advent of Blockchain Banking….Say ‘NO’ to Banking!
The global BFSI industry is enormous. Global assets under management (AUM) is assessed to be at around $85 trillion. This enormous industry is under attack from numerous perspectives.
Talking about innovation and banking, Blockchain will agitate the BFSI space unquestionably. There's already a considerable measure that has been deliberated, debated, and talked about this disseminated ledger, both on the web and offline. So this cutting-edge innovation doesn’t need a special introduction at this moment. Calling it 'disruptive' is putting it mildly. To get the picture of what blockchain is capable of, take a look at bitcoin or cyber currency. It has achieved a considerable measure of 'never heard of' situations in the BFSI space.
Since the advent of this Block-chain Technology in the realm of banking, specialists have dependably attempted to create a safe and secure means of exchange. One has to go through a third-party application or a negotiator or an administrative body to exchange cash. Be that as it may, here is a digital currency – totally de-centralized - and has broken every one of those traditional laws of banking. Today, an individual can send cash to anybody in the world very quickly without going through any issue. It is already occurring in different parts of the world. You can exchange cash by means of WeChat, Whatsapp, and even Facebook Messenger now.
Trust it or not, blockchain is a pivotal innovation that can be connected to the you-name-it domain. Starting from farming, avionics to the supply chain, banking, and food industry, blockchain is just about there, all around.
In the financial scenario, blockchain offers clients the simplicity of doing the exchange from anyplace. Does it accompany a colossal cost? No! For a tiny fraction, you could send money to anybody, anyplace on the globe, almost in a flash. The major concern for banks today is the increasing expenditure because of the consistently changing administrative landscape and the rapid technological progressions. Likewise, let’s not forget the extensive and tedious process for global money exchanges and KYC procedures. Blockchain offers exactly what banks require today; quicker exchanges and going easy on the pocket.
However, another part of blockchain that makes it so alluring in finance is its strength. Additionally, a de-centralized network implies there is no major issue to access information from one computer. A hacker that chooses to trespass with a single record can't go unexposed in light of the fact that the blocks - secured by cryptography - are interconnected. Which implies they need to meticulously roll out changes to every one of the blocks to effectively escape with the little stunt they are attempting to pull off. At the point when a record is being controlled, the digital signature related with it ends up becoming void and users get a prompt notice, along these lines shielding the system from additionally damage.
Several organizations around the globe are already trying different things with this technology. Major financial organizations, for example, the SBI Holdings, Goldman Sachs, and Citi group have heavily invested into the blockchain. Back home, the State Bank of India (SBI) has terrific plans set up to use blockchain for various procedures, including the KYC procedure. South Indian Bank coherently carried out a worldwide exchange using this technology. ICICI, YES Bank, Bank of Baroda, Axis Bank, and Kotak Mahindra are some of the few banks that have jumped on to the blockchain platform. While a few banks are exploring with this digital ledger and achieving great outcomes, some financial organizations are adapting to change and redefine gigantic pieces of their banking processes.
Good for them and their customers!
Out of Fortune 500 in the last 50 years, 84% of them are dead today. In the coming 10 years, it can be predicted that only a couple of banks will stay in Fortune 500. Most financial foundations will have either devoured blockchain firmly OR they will be gone.