In continuation to Blockchain for Beginners, Lisa Short talks about the threats and opportunities that blockchain has to offer to the financial sector. Though there are several roadblocks in the way currently, it can be surely said that Blockchain holds the potential to transform the finance and banking sectors by reducing potential costs and labor savings. Talking specifically about the banking and finance sector, hundreds and thousands of funds are being regularly transferred from one region of the world to another within each day. This makes the global financial system one of the most popular sectors that could be benefited through the application of Blockchain.
The knowledge of these technologies has enabled consumers with better understanding of how financial sectors work and now their expectations are also based on this knowledge. Now customers expect transparent process and realistic fees for services offered by banks. Hence, blockchain technology is also forcing these sectors to adapt their processes to stay in the market.
Leveraging blockchain technology benefits financial sectors in terms of reducing their costs, enhancing transparency for their processes and increasing their efficiency by saving time.
Blockchain technology also makes the transactions more secure with improved traceability for each transaction increasing trust factor for the customers. It is also promoting intercountry trading because it is easier and extremely cost-effective in digital transactions.