The finance industry has been very slow to catch up with the blockchain. This traditional sector is a bit resistant when it comes to adapting the changes and innovations in the business that happens gradually.
Just in the past few years, we finally started to see some big changes with Fintech companies. Financial ventures that started to invest in technology to solve old problems in the industry have improved activities in finance.
And there is no doubt that blockchain is the technology with the greatest potential to change for good all the financial enterprises, to help businesses save a great amount of money and make their processes more efficient.
Here are some of the benefits of blockchain for finance:
Reduce costs – Any type of transaction in financial institutions requires plenty of manpower to overlook all the minor details, from where the money is coming to where it is going, to clauses on contracts. But with the use of Smart Contract in the blockchain, the process can be automated, reducing paperwork.
Avoid human error – The automation also helps to avoid human error. Once the rules and intricacies of a contract or transaction are met, everything happens without the interference of people, making transaction less prone to human error.
Faster transaction – In the blockchain network, transactions are done without the need of a middleman. If you want to transfer some money for a friend, for example, you can transfer it directly to his/her wallet, without having to use a third-party, speeding up the process. This same feature also can make cross-border payments cheaper and easier.
Fraud reduction – From time to time, bank systems get attacked by hackers that can steal some money or data from clients or confidential information from the company. This happens because banks work with a centralized system that has one single point of failure, making easier for cyber-attackers to breach in. In blockchain-based systems, the data is stored in more than one node, so to have access to the information, it’s necessary to hack more than just one point.
Without question, blockchain and fintech services are the future of financial institutions. So it is already time for financial enterprises to start picking up the pace and enter the future.
The implementation of such technology can be beneficial not only for businesses but also for the clients, who can pay less for more efficient services.
Blockchain App Factory is the pioneer company in the blockchain and fintech applications development services. With a team of experts in the blockchain finance industry, we are ready to build the perfect application to improve the sector.