Blockchain In Banking- Blockchain technology has a huge crowd around it that cherishes and admires its capabilities. Though, banking and finance industry experts share a great devotion to this technology.
By 2018, 90% of European and U.S financial and banking institutions have started blockchain technology adoption. The major reason behind it is that this technology is able to reduce the cost of banking infrastructure by 30%.
Image Source: weforum.org
Since the blockchain market is envisioned to grow up to $20 billion annual revenue by 2024, blockchain in banking & finance may significantly grow. In short, this technology will be a major transformation strategy to improve the banking & finance landscape in the future.
However, for many people, blockchain technology in banking and finance has become a matter of doubt and worry. Some people don’t know about the usage of this technology and wonder why this technology is growing popular in the banking and finance sector.
Are you wondering the same? Let’s find the answer.
Reasons Behind Growing Popularity Of Blockchain In Banking & Finance
There are various aspects that support the idea of blockchain technology implementation in the banking and finance industry. But some are very prominent in nature that has boosted the popularity of blockchain in banking and finance. Here take a look at them:
The Arrival Of Cryptocurrency
Cryptocurrencies are a major triggering factor behind the popularity of blockchain. Before the arrival of bitcoin, hardly anyone knew about this technology. But! When bitcoin grew popular, everyone got curious about the technology behind it, and people learned about blockchain technology and fell in love with it.
A Secured Infrastructure
Blockchain technology’s infrastructure is another reason for its popularity. Being a distributed ledger system, this technology is based on cryptography, where each block is connected in a chain through cryptography. This makes this system highly secured and immutable; it means any changes in actual information can be traced easily.
Cheaper & Independent Money Transfers
Another reason for the popularity of blockchain technology in financial services is the reduced cost of money transfer. Blockchain-based money transfers don’t require any third party authentication, which automatically bears less cost. Altogether, transfers made on these platforms are private that can not be traced or scrutinized.
So, these are the three major reasons behind the popularity of cryptocurrencies these days. However, the biggest dilemma arises when banks and financial institutions have to decide on usage and blockchain-based banking software development for their processes and infrastructure to improve customer experience.