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Blockchain

Blockchain Technology in Fintech

Why you can’t get away from Blockchain if you are related to Fintech industry and how to implement it right away to extinguish competitors

Nowadays Blockchain technology is a topic everyone is talking about. Blockchain brought a true technological breakthrough which affected Healthcare, Shipping, Energy industries and of course primarily the technology significantly transformed the FinTech.

Gaining more and more popularity, FinTech and Blockchain technology interest not only individual enthusiasts or startuppers but even technically driven governments. Thus, UK, USA, China, Luxembourg, India, South Africa and Singapore support Fintech with companies receiving investments, tax incentives, subsidized loans, and other benefits to encourage their growth.

What is this if not evidence of Blockchain showing its potential to move the world of financial services and data sharing all over the globe. So what is the difference between Blockchain and Fintech? What makes Blockchain so powerful particularly in Fintech industry and what are ways of blockchain basics applications and limitations in fintech? Let’s have a closer look.

What is Blockchain, Fintech and how they are connected

FinTech is an industry of technologies and innovations which is used to conquer traditional financial organizations such as banks and third-parties on the financial services market. FinTech includes both numerous tech startups and big companies trying to upgrade and optimize provided financial services.

The main fields of Blockchain in FinTech application are:

fields of Blockchain in FinTech

Apparently, almost everyone has a common vision of Blockchain, if you would like to go a little deeper – here is a great article for you.

Interesting fact

There are over 4,000 Fintech companies and startups in 54 countries around the world with the USA, India, UK & Ireland, Israel, and Germany having largest number. 

Interesting fact

There are over 4,000 Fintech companies and startups in 54 countries around the world with the USA, India, UK & Ireland, Israel, and Germany having largest number. 

In few words, Blockchain is a database or a ledger that maintains a continuously growing list of data records or transactions. So what makes Blockchain so special? The main technology’s features are that it is trusted, decentralized, secure, shared publicity and automated.

Blockchain features

The key advantage of blockchain is that data is completely reliable and can’t be faked or changed. That’s why Blockchain is an effective tool to build up trust between business and consumers. As they have the ability to access and provide reliable information, make faster and cheaper transactions around the world. This, in turn, can decrease marketing expenses and encourage using of financial services.

Blockchain has the capacity to widely transform the business transaction process across nearly every industry of the worldwide economy.

Interesting fact

Forbes has published ‘First-Ever’ Richest People In Cryptocurrency List containing 19 people. In order to make the Forbes list, one must have accrued over $350 million.

Interesting fact

Forbes has published ‘First-Ever’ Richest People In Cryptocurrency List containing 19 people. In order to make the Forbes list, one must have accrued over $350 million.

The right applications of Blockchain in FinTech different fields such as asset creation and transfer or data validation can become a core indicator of system security and reliability, moreover a key value for success in FinTech industry.

Why modern financial systems need to be transformed

Currently, there was a great boom in financial technology – FinTech. Cash registers were replaced with smartphones and tablets, traditional loans gave way to crowdfunding and peer-to-peer lending. Meanwhile, cryptocurrencies continue to grow up in price.

Blockchain opportunities fit FinTech needs perfectly, becoming the most promising technology in this industry.

Blockchain opportunities

Why modern payment systems need to be upgraded with Blockchain

System can’t be trusted completely

Modern financial systems are fraught with various corruption and fraud cases. In centralized systems processes and data can be fabricated, changed or deleted. And vice versa decentralized Blockchain ledger provides all the authentic entries which copies are stored on numerous computers preventing data forgery and eliminating human error. Blockchain-based systems enable “trustless transactions”, which means that you don’t need to take the counterpart’s word, but you can be sure in systems’ mathematical reliability. With Blockchain technology transactions of any type and difficulty can be monitored in real time.

Transaction time

Blockchain also can provide the opportunity to reduce time for clearance and settlement processes as Blockchain records are seen in real-time.

According to Accenture’s report Blockchain has a potential to reduce infrastructure costs for investment banks on average by 30%. When it comes to international payments, the process of payment and settlement can often be complex because of many payment participants engagement.

blockchain fintech

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