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A Blockchain-Enabled Finance Industry is Soon a Reality!

Capital Markets CIO Outlook | Wednesday, July 24, 2019

Making the most out of blockchain, finance companies can deliver better services to customers and earn more profits.

FREMONT, CA: As blockchain finds its way through a maze of hurdles, the finance industry is getting ready to adopt the technology at a bigger scale. The potential of blockchain technology in banks and other financial institutions is very high. Industry experts are predicting that within a few years, a substantial number of companies will already be operating on the blockchain. Hence, the hype surrounding the technology is legitimate.

The technology came into prominence and developed profusely after the introduction of cryptocurrency. Blockchain works through a distributed or decentralized ledger in which peer-to-peer transactions take place. There is no requirement of a central clearing authority, thereby eliminating third party involvement. Such technology can be used for making banking safer and more transparent. Smart contracts are a feature of the technology with which financial institutions can work in many ways.

Few Blockchain companies:BLOQ , Cognive , HHS Tech Group

The financial market has a chance to use blockchain for many other intermediated functions like clearing and settlements. Finance market utility will undergo a makeover with blockchain in it. The mainstream applications of blockchain in the financial sector also mandate regulatory compliance. Regulatory compliance for blockchain-related operations is yet to be standardized or finalized. As a consequence of increased application, one can expect a faster implementation of regulatory compliance. The security aspect of blockchain and monitoring capabilities to assess the level of safety in a blockchain-based transaction will attract a lot of attention.

The slowness in putting blockchain to use arises due to the way banks and other institutions perceive the technology. The transition in operations is something of a risk for most, and hence, there is a lot of apprehensions. Most of the firms take a waiting stance and monitor the strategies that other companies employ. However, a proactive approach is the preferable way of dealing with blockchain adoption.

Taking all the stakeholders into confidence regarding the advantages of blockchains, and engaging employees in the transformation can mean a lot of possibilities. Rather than focusing on how well other companies are doing with blockchain, finance firms should take up the technology confidently.

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