The banking sector will benefit most from integrating blockchain into business operations. Financial institutions only work during business hours five days a week. This means that if you try to deposit a check at 6:00 PM on Friday, you will likely have to wait until Monday morning to see the money reflected in your account. Even if you order to process your deposit during business hours, the transaction may take one to three days to be verified due to the huge transaction volume banks have to pay. A blockchain, on the other hand, never sleeps.
When the block chain is integrated into the banking system; bank customers will see that their transactions take place in as little as 10 minutes. Moreover, transactions become independent from public holidays, weekend holidays or working hours. In addition, banks also have the opportunity to exchange money between blockchain and institutions more quickly and securely. For example; In the stock trading business, the clearing and clearing process can take up to three days (longer if trading internationally), which means that money and shares are frozen during this time.
Given the size of these sums, even the few days that the money is transferred can pose significant costs and risks to banks. European bank Santander and its research partners reveal potential savings at $ 15 billion to $ 20 billion a year. Capgemini, a French consulting firm, estimates that consumers can save up to $ 16 billion in banking and insurance fees each year through blockchain-based applications.
- CandleFocus Editor
Banking and Finance