How Blockchain Technology is Making a Big Change in Fintech Industry
Blockchain is what I call the big changer of technology that gives everyone the freedom he or she deserves. The invention of blockchain, which is an amazing technology of our time, is what brought about cryptocurrency, which is the future of money.
The fintech industry is more occupied with financial services that aim to support the services of traditional banks. Fintech is a financial establishment that supports the services of traditional banks by enriching their services. One of the key differences between fintech and the banking sector is that in fintech there is no means of cash deposit; instead, every transaction is done online using more advanced technology.
Despite the advanced technologies that are used by the fintech industry, customers are still facing security threats, transaction downtime, exposure of data, and a lot more, which blockchain technology is changing. Simply put, blockchain technology is now improving our traditional financial sector in terms of security, transactions, and so on.
The fintech industry is benefiting a lot from blockchain technology in the following ways, discussed below:
- Increased Security:
With the help of blockchain technology, internet fraudsters find it so difficult to hack into people's accounts or those of businesses and their clients. Blockchain technology has made fintech financial service providers more vigilant about protecting customers' information by providing them with additional security and means of verification.
- Increase Cross-Border transactions:
The fintech industry and traditional banks are still in shock seeing how the numbers of their customers are reducing gradually because people are now interested in international traditional transanctions, which can be done very fast through the use of blockchain technology.
To this end, the fintech industry has provided more services that support global transactions, like making it easy for people to send and receive money abroad.
- Reduce Transaction Costs
Before the invention of blockchain technology, fintech companies were seen as the kings of financial institutions, charging customers huge amounts of money for performing transactions. Today, with the help of blockchain technology, fintech companies have reduced the cost of performing transactions for fear of losing customers.
As blockchain allow users to perform transactions within themselves via peer-to-peer without the involvement of a third party, which makes blockchain transactions very cheap, fintech has to reduce transaction costs to attract customers.
- Secure Data Storage for Auditing
One of the integral roles of a fintech company is auditing, which consumes time due to the paper workload. With blockchain, fintech companies can upload and access old data. I.e., previous data for a faster more seamless auditing process than using paper methods that usually consume time.
Conclusion
Blockchain technology is changing not just the fintech industry but many other industries. Blockchain is for all industries; it is seen as a revolutionary technology that is meant to make the world a better place where everyone would have trust and confidence in doing business across the globe. For more reading the below link where I carryout my research can help you out.
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The blockchain technology is indeed affecting the fintech industry, thank you for sharing this
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