Blockchain use cases in banking

Financial Industry has been trying to experiment with blockchain by replicating existing asset transactions on the blockchain. While this allows some scope for efficiency implication of a blockchain solution, what gets missed out is the ecosystem implications of a blockchain solution. In infrastructure terms the blockchain is an open source software that is built to support the transfer of digital assets amongst market participants in real time. Most bank implementations are focused on this aspect. But while scaling proof of concept into a real world scenario, financial institutions end up implementing the same application layer that exists currently with all the current checks and balances.

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Content:

• Blockchain in Fintech: Benefits for your Business
• Top 5 Bitcoin Blockchain Use Cases In Banking And Finance
• Blockchain Use Cases for Financial Services and Banking DApps
• Seven Trends at the Frontier of Blockchain Banking
• Modernizing retail banking with blockchain, Red Hat and HCL
• Are finance and banking the end of Blockchain uses?

WATCH RELATED VIDEO: Top 6 Blockchain Use Cases

Blockchain in Fintech: Benefits for your Business

The potential use cases of Blockchain technology, as well as the number of Blockchain development companies and start-ups, has been constantly on the rise. Amongst the many industries that have been disrupted using Blockchain solutions, the Banking industry is definitely at the forefront of it. So much so that the conversations around Blockchain have now moved from niche fanatics and enthusiasts to mainstream banking experts and investors.

In fact, a recent Accenture report showed that 9 out of 10 executives from major banks admitted that their institutions are currently exploring potential Blockchain technology solutions.

This means banks are definitely interested in Blockchain. Can Blockchain help the traditional banking system? If yes, then in what ways? In order to successfully be able to do this, they require a lot of processes as well as mediators. This is what makes the whole banking process a little bit slow and a little more expensive. Additionally, the involvement of multiple manual processes as well as human mediators makes the banking industry prone to frauds and errors.

Blockchain technology promises a high level of security, transparency and decentralization which are essential characteristics for a technology that aims to solve problems faced by traditional banks.

Today, traditional banks enable the transfer of trillions of dollars around the world. However, the current system takes anywhere between days to verify and settle transactions between two parties. Thus, banks can reduce their processing time and offer their customers access to cheap, fast and borderless payments. Traditional banks are plagued with incidents of financial crimes and cyber-attacks such as fraud, data leakage and bank account hacks.

Blockchain technology is built on cryptography principles of public keys, private keys and hash functions. Moreover, they are built on a shared ledger system which means there is no total dependence on just one entity, unlike traditional banks. A weekly digest of top articles picked up by the community manager, from resources to technology. Please fill in this field. You have been successfully registered for our daily newsletter.

This helps banks in securing transaction information and avoiding attacks from fraudsters and hackers. Blockchain technology solutions enable faster transactions which means there is less time for attackers to intervene. Additionally, once any ledger entry is verified and stored, it is almost impossible to tamper with it because of the decentralized and shared ledger system. Banks have to maintain a huge amount of data. In the traditional structure, the problem happens because so much banking information lies in more than one place.

Hence, this same data can be changed by multiple parties at different locations. This results in either incomplete or outdated information. This is a much simpler explanation of what happens in reality but the point is that the systems are quite complex and it can result in chaos when the data is not maintained properly.

Modern blockchain technology is capable of storing any kind of data. The use of Smart Contracts further enables data to be accessed and changed only according to predefined rules.

The shared ledger system allows everyone to act on the same copy of data. This allows for faster and secure transactions with more reliable data. The traditional banking system has a lot of intermediaries and middleman when it comes to interactions and executing transactions. This interactions with intermediaries increase the final cost of a transaction. The use of Smart Contracts in blockchain technology solutions can help in performing administrative functions, maintaining and executing contracts.

This helps to reduce the interactions with intermediaries which further helps in reducing overall costs. Traditionally, banks giveaway loans based on your credit rating which is given by third party agencies.

This kind of system is often hostile to consumers which might negatively impact their ability to get loans. They can use this to calculate a global credit score and give away loans in a cheaper and more efficient way to a large pool of consumers. Blockchain-based projects for banking are still developing. Disclaimer: This is a user generated content for MyStory, a YourStory initiative to enable its community to contribute and have their voices heard.

The views and writings here reflect that of the author and not of YourStory. Blockchain technology has transformed the banking sector by combining shared database with cryptography, smart contracts, and digital payments.

Learn use cases of blockchain technology in the banking system that allows multiple parties to secure transactions. How will Blockchain help the traditional banking industry?

Here are five things to know Faster Transactions and Payments Today, traditional banks enable the transfer of trillions of dollars around the world. This means banks can use this Blockchain-based solution to reduce the time required to verify and settle transactions. Eventually, as technology matures, transactions can even occur in real-time. Increased Security and Fraud Reduction Traditional banks are plagued with incidents of financial crimes and cyber-attacks such as fraud, data leakage and bank account hacks.

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Top 5 Bitcoin Blockchain Use Cases In Banking And Finance

Home » Guides » Blockchain for Business. Matthew Baggetta. Have you ever been infected with E. Did you know that there are insurance companies that insure other insurance companies? Can you find Estonia, a tiny Northern European country, on a map?

Blockchain Use Cases for Financial Services and Banking DApps

The purpose of this paper is to help in providing a better understanding of the application of blockchain technology in the context of the banking and finance sectors. The aim is to outline blockchain's benefits, opportunities, costs, risks as well as challenges of the technology in the context of banking and finance services. Careful examination of the extant literature, including utilising relevant academic-based research databases has been carried out. It covered reviewing various research contributions published in peer-reviewed journals, academic reports, as well as technical reports to help in identifying related benefits, opportunities, costs and risks. The findings reveal that there are limited contributions in utilising blockchain in the banking and finance sectors when compared with other sectors. As such, the study highlighted the relevant perspective of benefits, opportunities, costs and risks within such sectors. This study helps in offering a focal point to banking and financial sector managers and decision-makers for realising the value and offerings of blockchain technology as well as associated strategies and programmes. This study highlights the need for a holistic understanding of the various aspects of cost, benefits, risk and opportunities to create blockchain applications that work for banking and finance sectors.

Seven Trends at the Frontier of Blockchain Banking

Try out PMC Labs and tell us what you think. Learn More. FinTech Financial Technology and Blockchain are prevalent topics among technology leaders in finance today. This article describes the impact and revolution of FinTech and Blockchain in the financial industry and demonstrates the main characteristics of such technology. Then, we present three critical challenges as well as three ethical issues about using Blockchain technology.

Modernizing retail banking with blockchain, Red Hat and HCL

Blockchain has changed the way people think about money. Our focus has been on identifying the use cases for blockchain that will change the way we do business for the better, by simplifying processes and removing inefficiencies across our industry — ultimately for the benefit of our customers and clients. The prevailing view is that blockchain will cause two main shifts in the way Barclays does business. The first is in its broad potential to bring financial institutions closer together and make global collaboration easier. The second is by creating real efficiencies in the way the bank processes data. Among other collaborations, Barclays has recently announced that it is one of the investors, along with other major financial institutions, in the creation of Utility Settlement Coin, a new digital cash instrument that is implemented on distributed ledger technology and connects commercial bank money to central bank money.

Are finance and banking the end of Blockchain uses?

Subscriber Account active since. To learn more and subscribe, please click here. In the aftermath of the financial crisis, investment banks faced rising regulatory burdens, rising compliance costs, and a consequent shrinking of innovation budgets. However, in Q4 these banks reported large profits, suggesting that they are finally on the path to recovery; we have also seen major players renew their focus on digital transformation. Now, a new report by consultancy Accenture and benchmarking firm McLagan suggests an area particularly deserving of incumbents' attention. The study, using data for eight of the world's largest investment banks, looked into the potential benefits that blockchain adoption might deliver. These are the areas in which the study found blockchain promises the largest potential cost savings:. Investment banks seem particularly well positioned to reap the advantages blockchain promises.

The financial services industry is estimated to reach USD 2. The global financial system deals with trillions of dollars a day and serves billions of individuals. With such great heights come many challenges that the finance industry has been facing for a long time. Ranging from the high cost of multiple stakeholders to delays, excessive paperwork, and data breaches, these challenges have been the root cause of massive amounts of losses the industry faces every year.

Blockchain eases the existing pain points of buyers, sellers and financial institutions while opening the ecosystem to new non-traditional players. Blockchain can create an auditable source of information shared and verified across a network of organisations e. Blockchain shows promise to drive efficiency in the clearing and settlement process of digital assets through the use of coloured coins. Blockchain offers an immutable and irreversible source of information that can track the true ownership of a product across the supply chain. Blockchain can be used as a shared master data repository for common industry information allowing members to query the data. Blockchain provide a method for collectively recording and notarising any type of data, whose meaning can be financial orotherwise.

In a blockchain, there is no mechanism to correct it - people have to accept it. Everyone is talking about blockchain, the new technology in the FinTech Industry. The concept of blockchain has energized the financial services industry globally. The concept has already brought a disruption in the financial industry. We bring to you the overview, technology, application areas, and use cases of blockchain. Source: Dupress.

This white paper takes a look at how strong key protection controls are paramount to ensuring the robustness of a blockchain system. Find out how the Utimaco HSM provides a secure, efficient and cost-effective way for protecting sensitive data and associated keys for blockchain systems using distributed ledger technology DLT and wallets. Simply add it to your collection.