Blockchain technology has the potential to improve banking and lending services by reducing counterparty risk and shortening issuance and settlement times. It enables authenticated documentation, improving process efficiency, lowering operational risks, improving end-user experience, and enabling real-time financial document verification. This underlying technology in the finance industry enables the transfer of currency with confidence that the transaction is secure and reliable.
How financial businesses are leveraging the power of blockchain
- As users perform activities on a public ledger, blockchain can make the financial industry more transparent. This transparency has the potential to expose inefficiencies such as fraud, leading to problem-solving that could reduce the risk for financial institutions.
- The private and hybrid networks are designed to withstand hundreds of transactions per second as well as periodic surges in network activity.
- Many financial institutions have adopted blockchain technology for international payments, which saves time and money.
- Customers can also use blockchain money transfers to complete electronic transfers with mobile devices, avoiding the time-consuming process of visiting a money transfer facility, waiting in line, and paying transaction fees.
- Despite the fact that digital currency is already in use, blockchain companies are lowering the entry barrier and providing a seamless exchange of the most popular cryptocurrencies as a banking alternative.
- Because of blockchain’s low costs, startups can compete with major banks, promoting financial inclusion.
- As consumers become more active online, the digital world is becoming a breeding ground for scammers. With Blockchain technology, this issue could be alleviated. Blockchain payments and money transfers are faster and more traceable than traditional banking.
Because of the above-mentioned benefits, most of the leading financial organizations are adopting blockchain technology to transform their services.
The Bank of England expects to save “tens of billions” of pounds by using blockchain technology for settlements.
R3’s blockchain platform is also used by HSBC to enable its Digital Vault, a custody blockchain platform.
Blockchain opportunity using Futarium
Klaspad’s team behind the creation of Futarium has the vision to eliminate document fraud by providing transparent and efficient blockchain-based systems. Futarium blockchain uses Hyperledger which does not use cryptocurrency-based systems like Bitcoin and Etherium which requires an extremely prominent level of computational power and tends to get slow on upscaling. Hyperledger uses far less computational power and is highly scalable at low costs.
Futarium is already active and has made significant inroads into the educational sector to prevent false certification and CV fraud.