Top five use cases for blockchain in fintech

ITProPortal | Malcom Ridgers | Nov 5, 2020

blockk 300x189 - Top five use cases for blockchain in fintech Blockchain is guaranteed to change the way we operate. Since blockchain is a decentralized ledger with strong focus on cryptography, security, and privacy, it’s ideal for banking applications and fintech.

Most banks are now using blockchain technology to create more efficient ways to record data. In 2020, the market share of blockchain in banking was 29.7 percent. Since blockchain allows you to update data in real-time, it’s a more cost-effective method to record transactions without intervention.

See: Blockchain: legal and regulatory guidance report

1. Digital identity

Banks have to ensure that the transactions they are carrying out are secure and validated. Most banks have their own security algorithms to confirm user identity. But for customers, they often are a huge hassle as they have to go through multiple security checks for simple tasks like checking their balance, transaction history, etc.

Banks sometimes also perform KYC (Know Your Customers) tools that further annoy customers. If you have accounts in different banks, going through different security protocols can be confusing, time-consuming, and frustrating.

To counter this, you can use blockchain. With it, you can create your digital persona instead of relying on the one made by banks. You can also reuse your persona for identification at different institutes and locations, which will allow you to save time and effort.

See: From Voting To Social Media: What Does The Future Hold For Digital Identity On The Blockchain

2. Trading

The trading system should ensure that all participants have correct entries and that the users can perform changes securely at any time they want. Blockchain is designed to handle exactly this. It can improve the whole process by using a generalized ledger.

Since information is refreshed in real-time, the flow of information is fast, and it is easy to make business decisions and policies based on that. Such a system also improves the whole lifecycle of the trade by reducing shorting risks and improving accountability.

3. Payments across the world

Blockchain supports decentralized currency, which means that you don't have to go through banks for your payments or transfers. It can also help in faster and easier payments since it costs less to transfer money from one account to another.

Since transfer through blockchain doesn’t require third party authorization, and banks don’t require resources to transfer funds, the payment processing fees are also less.

Blockchain will help to improve the flow of currency all around the world. Normally banks charge 10-15 percent of the amount transferred as a remittance fee. With blockchain, this comes down to 3 percent.

 

 

Continue to the full article --> here

 

 


NCFA Jan 2018 resize - Top five use cases for blockchain in fintech The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Top five use cases for blockchain in fintechFF Logo 400 v3 - Top five use cases for blockchain in fintechcommunity social impact - Top five use cases for blockchain in fintech

CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!



FFCON20 Pitching and Demo Winners - Top five use cases for blockchain in fintech



NCFA COVID 19 letter to government to support Fintechs and SMEs - Top five use cases for blockchain in fintech

NCFA Newsletter subscribe600 - Top five use cases for blockchain in fintech