Given how technological advances have proven to be revolutionary for a wide range of industries, Blockchain is one of the most innovative and useful technologies.
Technology that is essential
Today, fintech industries are increasingly using blockchain in numerous financial services. Financial infrastructures, traditional banks, and credit unions must use fintech innovations within existing service platforms, extensions, to survive the next five to ten years.
According to the Deloitte Global Blockchain 2020 survey, up to 55% of executives said that blockchain is among the top 5 strategic priorities. By 2023, the C-Suite team will have implemented innovations and solutions in the field of blockchain for mass acquisition by more than 70%.
Numerous fintech startups, businesses, large technology companies, vendors, and venture capitalists are targeting blockchain in the disruptive areas described below. In addition, the blockchain will cause changes in many government systems, and central banks-new digital currencies, as well as regulations.
- Fast implementation of smart contracts
Smart contracts are changing the way businesses do business with blockchain transactions. This helps to get rid of escrow requirements and time-consuming paperwork. Currently, smart contracts in the blockchain are used in huge financial infrastructures, including JPMorgan. The company secures transactions in the $ 2.3 billion REPO agreement market using smart contracts on the Ethereum-based blockchain, enabling instant payment of money transfers and transfers of U.S. Treasury securities.
Smart contracts provide financial infrastructures with ample opportunities to implement blockchain technology. These are robust mechanisms that can be extended beyond national borders. The leaders of large financial organizations strive to add new features and solutions to existing solutions. The popularity of financial technologies continues to contribute to the consolidation of financial services. CME should integrate fintech services, open APIs, and partner platforms.
- Protection against identity fraud and security of personal data
The emergence of personal data and digital identity management is crucial for the fintech industries. Identity verification solutions are still the most important in the financial infrastructure, given the evolution of cybercriminals in parallel with technological advances. Blockchain transaction data circulates in decentralized registries, and after execution, the data is encrypted, recorded, and protected in the application.
When properly applied, blockchain transactions can prove useful for improving security and can prove effective in combating fraudulent activities.
- Payments and settlements in seconds
The rapid adoption of mobile payments and digital wallets will continue to grow as a new wave of innovation engulfs fintech. Innovations in the field of blockchain payments include several components, such as smart contacts, mobile wallets, contactless payments, mobile payments and identity verification. Further use cases may also require artificial intelligence and machine learning. Blockchain-based financial transactions will continue to evolve to take them out of the hype and into the mainstream in less than three years.
- Increasing automated growth
This year, there will be an increase in interest in both financing and lending to customers, as well as in financing between enterprises. Области B2B, C2C и B2C столкнутся с быстрыми темпами приобретения финтех в виде приложений на основе блокчейнов. Credit unions and financial infrastructure have already become mainstream and allow you to approve loans in almost real time using financial applications such as Plaid. Currently, large industrial payment systems and networks entering the card installment market are testing trends in terms of financing and loans.
- New Standard: Credit cards, digital currency, and ATMs
The use of digital currencies is accelerating worldwide, and this evolution is the result of two major factors: the COVID-19 pandemic, and increased consumer demand. Digital transactions are accurate, efficient, efficient, reliable, simple, and can be activated anytime, anywhere.
Blockchain has proven useful for delivering private and decentralized digital currencies.
It is no mistake to say that fintech companies are changing the size and landscape of financial transactions with the help of blockchain. Traditional financial transaction methods are being transformed into safer, more reliable, and more efficient procedures that tend to develop transparent relationships between customers and businesses by building trust. In the coming years, customers will continue to acquire revolutionary mobile technologies if effective regulations and security measures are developed at a rapid pace.
The next evolution will be observed in the “Bank as a Service” model in the coming years. Consequently, the introduction of blockchain in financial technologies opens up new innovative opportunities for managers in the field of the Internet of Things and supply chain management together with 5G.