The world is continually changing thanks to advancements in technology. In recent years, a lot of technological trends have been introduced but nothing has been more fascinating than the fusion of Fintech with blockchain. And there are many reasons for it. For instance, it has improved the security features in the financial sectors. But that’s not all! This blend has also revolutionized Customer to Business. It has also enhanced customer due diligence through reduced costs.
As the digital world is evolving at a rapid pace, e-wallets and online payments are becoming the new normal. But the security of such facilities has always been an issue. But not anymore! You see, Fintech technology is tackling such challenges head-on and is resolving them with the power of blockchain. The merger of these two technologies has played a major role in reducing costs and data integrity. At the same time, it has provided user identification for data security along with data authentication.
5 Ways How Is Fintech Changing the World with Blockchain
The blend of Fintech and blockchain has proved to be super beneficial. It has made the world more secure. Here are five ways how the fusion of these two technologies is changing the globe for the better.
#1. Improves Digital Identity
Online scams and cyberattacks are becoming more sophisticated with the advancements in technology. It’s not a surprise anymore that malicious users try to misuse people’s identities for illegal transactions. This has created a lot of fuss in the transaction flow. The only way this could be stopped is if financial sectors make use of advanced identity verification services to verify the identity of users. But this can get frustrating as you will have to verify yourself before making any transaction. This is where blockchain comes in. It provides a digital identity system that can easily fight against deceivers and fraudsters. And the best part is that the customer has to go through the validation process just once.
#2. Stops Stock Market from Dark Tactics
Blockchain as many would know is the key to minimize inaccuracies and inefficiencies through automation. So, adopting this technology in the Fintech industry will not just lead to reduced cost but will also increase the market base along with lowering entry barriers. What’s more? This will eliminate high fee charges, stock tempering, time-taking processes, commissions of intermediaries, and naked short selling.
#3. Enables Cost-Effective Transactions
It has been observed that remittance companies are making more money per year than any other industry as they charge a significant transaction fee. And sadly, the situation hasn’t changed at all. But blockchains are different. A blockchain system consists of blocks and every block contains data. However, new blocks don’t meddle with the previous blocks no matter how vast the system gets. This is what enables Fintech blockchain applications to decrease high charges during the transaction. Another thing that makes this possible is the peer-to-peer transactions which eliminate the unnecessary costs.
#4. Allows the Globalization of the Banking Industry
Blockchain has had a huge impact on the banking sector around the world. Therefore, it is not a surprise that some of the big names in the industry are betting big on the blockchain so they may remain relevant in Fintech competition. It has helped banks to improve their accuracy and efficiency. Moreover, blockchain technology has resolved issues related to data collection and reporting. But you should also know that there are a number of Fintech startups that are offering more efficient and accurate solutions to combat the pain point of traditional banking systems. TransferWise is one such example that provides peer-to-peer or P2P payment software.
Fintech and blockchain are two different sides of the same coin that complement each other. It is because of the advanced features of the blockchain that has single-handedly changed the dimensions of the Fintech industry. Both technologies have revolutionized the world, making it more secure. From money transactions to resource management, everything has become more protected thanks to the fusion of Fintech and blockchain. However, to benefit from this merger, you will need to have a stable internet connection. I found Spectrum internet prices really attractive which is why I subscribed to their service. It has been working fine for me so far. You too can consider subscribing to an ISP that promises to deliver a high-speed connection.