Thursday, June 30, 2022
Techiexpert.com
No Result
View All Result
  • Login
  • Register
Exclusive Videos
  • Tech news
  • Startup news
  • Artificial Intelligence
  • IOT
  • Big Data
  • Cloud
  • Data Analytics
  • Machine Learning
  • Blockchain
  • Social Media
  • Tech news
  • Startup news
  • Artificial Intelligence
  • IOT
  • Big Data
  • Cloud
  • Data Analytics
  • Machine Learning
  • Blockchain
  • Social Media
No Result
View All Result
TechiExpert
No Result
View All Result

How Blockchain is Transforming the Way Banking Apps Work

Yuvrajsinh by Yuvrajsinh
July 23, 2020
in Tech news, Blockchain
Reading Time: 6 mins read
How Blockchain is Transforming the Way Banking Apps Work
13
SHARES
175
VIEWS
Share on FacebookShare on Twitter

The banking industry is not just the most important, but also the most vulnerable industry globally. The need for security is increasing, as there is just too much at stake, and the need to keep it safe is high. Apart from this, consumers tend to consume the banking app and other banking products using the mobile phones, which has made it impossible to keep a check on the products and how fulfilling they are.

While you want to capitalize on the provisions of the banking products, you also want to keep the infrastructure requirements and other needs of the industry under check. Blockchain is the answer to maintain infrastructure security and keep up with the product security and consumer’s needs for privacy in data exchange.

It is still in the nascent stage but it is definitely a growing technology one that will enhance the experiences and maintain the security needs of the industry.

Is there a need for decentralized payments or secure methods of banking?

  • In the case of financial companies, there is a growing need for third party banking, which means the data may or may not be reliable.
  • Real-time payments have become an essential which calls for security and needs an assurance that the payment can be facilitated irrespective of the location.

With Blockchain, the payments happen in a peer-to-peer network. The technology can be used to manage monetary systems in various defined manners. You can use the technology for contract executions and payments as well as third party transactions.

In this blog, you will learn 5 aspects how blockchain is transforming the way banking apps work.

1. Facilitates Efficient Money Transfer

In the Internet dominated era, it has become essential for money to be transferred not just within the country, but also from one country to another. Banks need to facilitate this transfer of currency, along with exchange of this currency. It is especially true for companies operating in different countries and time zones. There is a lot of money being transferred, which can raise major security concerns.

However, if you use Blockchain technology at the core of banking, you may not face these issues. This technology will help improve the transactions, and make it less expensive. This method makes the whole idea less cumbersome.

With cryptocurrency, you get an alternative mode of payments, which helps boost the security and ensures that all suppliers within the network are taken care of.

With the crypto-based currency transfers, there is less time involved and the customers tend to profit from this exchange. The cost of this transaction is also less compared to the other methods. So, it is time companies adopt Blockchain-based transfers instead of the regular digital transfers, to save money and time, and make the whole process hassle-free.

2. Immediate Fraud Detection for Increased Security

One of the major issues facing the consumers of the finance app industry and the people within the banking network is fraud. Cyber Crime seems to be prevalent in this industry majorly, leading to most people refraining from digital and convenient mode of transactions.

However, Blockchain can ease these issues out, and make payments more secure and the overall industry safe for the future.

The main reason why frauds occur and the banking security is becoming an issue could be attributed to the fact that the banking system works on a centralized database. This makes the system vulnerable and gives complete access to the criminals.

However, with Blockchain, your system is introduced to a decentralized system that works with a timestamp. So, even a small manipulation made to the system will be recorded with the time, which will make sure that criminals stay away from the system. In fact, you cannot change a single block; every change made will affect all the blocks involved.

3. Record KYC with Ease & Increase Security

Banking customers share a lot of data with the banks, which is vulnerable and at risk in the centralized system. Know Your Customer is essential given the current regulations where the bank needs to know every detail of the customer. However, keeping the data safe can be a bigger concern, which is why most of the people don’t share their details with everyone. This can restrict the movement of trade and transactions. That’s precisely why the banking industry should consider blockchain.

It will not only verify the data that has been submitted to the bank, but also ensure that the data is not shared with anyone unless they have the permission to receive the data by the customer. The verification process is easy and hassle-free in case of blockchain. In fact, you wont need to get the customer to perform the KYC again and again. The data would be located in one place, and with permission the different banking and financial institutions can access the data.

4. Smart Contracts and Fewer Hassles

Whenever a user enters into an agreement with a third party, they sign contracts. This involves numerous intermediaries. Not only is there a chance of losing the data and other required documentation, but also the hassle of involving so many people and ensuring data safety at the same time. It will also increase the transaction cost.

However, with smart contracts that are blockchain enabled, you won’t be facing these issues. From exchanging money to making transactions, every contract is digitally enabled and secured within a block. No manipulation or access without permission is possible. in fact, these smart contracts allow users to get rid of brokers and other intermediaries that were responsible for contracts in the earlier times, thus ensuring quicker and efficient systems in place.

5. Reduce Need for Storage Locations

Banks deal with multiple products which call for multiple data and consumer inclusions. However, this duplication of data and multiplicity of the transactions cannot be easily handled, which is why you need to have proper storage locations.

Blockchain facilitates single storage location for all the data and transactions. All your products are saved within a single location, thus making it easier for you to handle the data and ensure consumer satisfaction with a good experience.

The overall efficiency of data management and handling is also increased with blockchain at the core.

Apart from this, blockchain is also used for the following

  • To reduce the volatility of crypto currencies and digital payments in the banking industry and make it more reliable
  • For better and easier identity management, so that a single person does not end up using multiple identities and having too many accounts or data within the bank

Summing Up

Blockchain is all about the network, and so when you are implementing Blockchain within your bank you need to take care of a few things.

  • You should ensure that the network defines the rights, obligations and even the controls and standards for the transactions.
  • The seamlessness of the on-boarding process will determine the effectiveness of blockchain and the networks for your bank or financial institution.
  • There are different ways to adopt Blockchain for your bank or financial institution. Before going ahead with blockchain, you need to prepare a roadmap and have a plan defined for adoption and use of this technology. You should also define the purpose of introducing this new technology.
  • When you think blockchain, make sure you also include current technologies such as IoT and AI in combination with it for better and efficient systems and management of transactions.
Tags: Fintechmobile banking
Share5Tweet3Share1Pin2

Related Posts

Ways Data Analysis has changed customer reward programs
Tech news

Ways Data Analysis has changed customer reward programs

Digital Learning face recognition
Tech news

Here’s why Deep Learning might not be enough for celebrity face recognition

How Enterprise Blockchain can enable Privacy Preservation
Blockchain

How Enterprise Blockchain can enable Privacy Preservation

How to flip NFTs
Blockchain

How to flip NFT’s

VPS Helps Forex Trading
Tech news

Staying Safe When Trading on a Trading App

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Most Read

  • How to Track Someone’s iPhone by Phone Number?

    How to Track Someone’s iPhone by Phone Number?

    296 shares
    Share 118 Tweet 74
  • Top 5 car automation trends to know

    130 shares
    Share 52 Tweet 33
  • What is windows modules installer ? How to Enable/Disable

    1233 shares
    Share 493 Tweet 308
  • Is Parody Coin investment a Good Investment?

    57 shares
    Share 23 Tweet 14
  • How to Track Activities an Instagram account?

    81 shares
    Share 32 Tweet 20
  • Tips to Reduce Your Website Hosting Costs

    868 shares
    Share 347 Tweet 217

Recent Stories

Does domain extensions impact SEO standards

Does domain extension impact SEO standards
Share4Tweet3Share1Pin1

Mozilla launches Thinderbird for android

Mozilla launches Thinderbird for android
Share6Tweet4Share1Pin1

Data Analytics startup USEReady launches a new centres

Data Analytics startup USEReady launches a new centres
Share5Tweet3Share1Pin2

Is Signal an alternative to Whatsapp?

Is Signal an alternative to Whatsapp?
Share7Tweet4Share1Pin3
  • Terms of use
  • Privacy Policy
  • About Us
  • Contact us
  • Write For Us
  • Cookie Policy

© 2022 All Rights Reserved

No Result
View All Result
  • Tech news
  • Startup news
  • Artificial Intelligence
  • IOT
  • Big Data
  • Cloud
  • Data Analytics
  • Machine Learning
  • Blockchain
  • Social Media

© 2022 All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Cookie Law Notice
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT