Blockchain is one technology that is said to be bringing in a revolution in the financial technology industry.
FREMONT, CA: The blockchain technology enables more open, inclusive, and secure business networks, shared operating models, more effective processes, mitigating costs, and new products and services in banking and finance. It allows digital security to be issued within a shorter period, at lower unit costs, with significant customization levels. Digital financial tools may thus be tailored to investor demands, widening the market for investors, reduced costs for issuers, and mitigating counterparty risk. Here are the applications of blockchain in fintech.
• KYC Verification
Blockchain solutions are being leveraged widely for authentication, verification, and storage of electronic records in the financial industry and generate a KYC utility for the National Stock Exchange. Startups are among the key players here.
• Supply Chain Financing And Management
Blockchain systems enable significantly higher settlement turnaround time at lower costs by offering a single source of truth regarding pivotal points in the supply chain, like creditworthiness, supplier inventory levels, purchase order receipt, invoice receipt and approval, and many more. Startups design and develop blockchain-powered enterprise solutions for smart contracts, supply chain finance, insurance, among others. Then, a firm combines IoT and blockchain to offer real-time tamper-proof end-to-end tracking for packages and goods that find problems and inefficiencies in the supply chain.
• Trusted Payments Solutions
Blockchain technology facilitates fast, secure, low-cost international payment processing services through the utilization of encrypted distributed ledgers that offer trusted real-time verification of transactions without the requirement for intermediaries such as correspondent banks and clearinghouses. Blockchain technology was primarily used to help the digital currency Bitcoin but is now being explored for various applications that don’t involve Bitcoin.
• Records Storage And Management
Documents in physical or digital form can be modified. While several products and services offer secure and verified document management, they tend to be expensive and often need a third party involvement. Blockchain embeds authentication into the document and using a closed-loop tracking system to guard against tampering or modification.
Check out: Top Blockchain Solution Companies
