What if you could have instant payment settlement without fees — Venmo, PayPal, and other alternatives, completely free and immediate?
With humans now accustomed to absurd levels of convenience, version 2.0 of our favorite payment apps would be a hit. Customers always crave a more seamless banking experience, and financial institutions that don’t invest in the next wave of convenience-enabling technology may be left behind.
The blockchain could assist the convenience revolution in banking. Blockchain-powered tools may automate banking operations so that they become available 24/7. Many of the in-bank processes that currently require human tellers could be automated using blockchain, creating an entire banking ecosystem based on convenience.
Self-executing loans, round-the-clock deposits and transfers, and faster transactions without ever having to deal with a human. (Not to mention the end of waiting in line at the bank.)
It’s not just a matter of convenience. Even mom-and-pop banks who know their customers by name care about the bottom line. Blockchain innovation will impact customers directly, but savings from automation will drive investment in the technology.
1. Kumar Gaurav, CEO and Founder of Cashaa
“For traditional banking, it is immutability, holding everyone accountable forever, whether they are bad actors from within the bank or outside, which can restore banks’ reputation. Not only are payments recorded forever, but in the same time it could also serve as immutable storage for the supporting documents of each transfer, such as invoices and contracts.”
2. Rashid Oukhai, CEO and Founder of Peculium.io
“According to an issued report by Santander bank: the use of blockchain could lead to cost savings, they are expecting that blockchain can help reduce banks infrastructure costs by between US$15 – 20 billion per annum by 2022.
In terms of transactions, the conventional financial transactions consume a lot of time as it may encompass many individuals, a need of exchanging messages, some settlements or security checks which blockchain can resolve by reducing the prolonged timeframe from days to seconds as it works by decentralizing everything.
Indeed, the blockchain’s shared ledger keeps a full record of its transactions and everyone can have access to it as long as they belong to the “Authorised parties” and at any time. Any sort of stored information is immutable which means they cannot be changed retroactively or manipulated as technically the blockchain is described as cryptographically sealed. As a result, blockchain can provide banks with greater transparency and easy accessibility while reducing the needs of third-party involvement compared with the outmoded systems implemented by the traditional banking sector.”
3. David Bleznak, CEO and Founder of Totle
“Blockchain eliminates the third party. Consumers are now enabled to receive and access banking/financial services without giving up custody of their assets. It's no longer a necessity for consumers to wait seven days to access their own money.”
4. Javad Afshar, President of BlockchainBTM
“The speed of transaction will be the number one trend and benefit that will shape blockchain in banking. With bitcoin having a transaction verified in 10 minutes, there are other blockchain developments that make processing payments even faster.”
5. Eric Solis, CEO and Founder of MovoCash, Inc
“Blockchain technology provides customers with transparent and more secure transactions. The technology was originally designed to transfer cryptocurrencies through a public decentralized ledger that anyone could use for peer-to-peer transactions, thus eliminating the need for third parties to be involved. Therefore, the root of the technology eliminates the need for intermediaries to verify transactions, which ultimately, allow more transparent payments with potentially lower third party transfer fees.
Furthermore, the decentralized nature of blockchain eliminates customer risk to identity theft by no longer storing all information in a centralized location. Using blockchain, the banking industry can create smart contracts capable of executing a variety of different types of transfers, transactions and settlements with immutability of title, value and identification of both tangible and intangible property.”
6. Dr. Michael Yuan, CSO at CyberMiles
“Imagine a mortgage or other money-lending operation that automatically concludes once your bank electronically uploads proper documentation of your loan. (Example: applications on the Ethereum network can enable this process via smart contracts that transfer funds automatically once certain conditions are met.). Blockchain-based applications that immutably, transparently perform routine tasks (like loan verification) could represent a significant cost- and time-savings for both the lender and the lendee.”
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