In all jurisdictions, the banking sector is highly regulated while their conservative attitudes distinguish representatives of the banking sector. However, blockchain’s broad spread over recent years, cryptocurrencies' overwhelming popularity, and the ICO boom ensure that many banks’ management and financial organizations’ potential are no longer denying blockchain technology. Large banks are increasingly testing and introducing decentralized asset technology in business processes. Banks continue to invest in a variety of blockchain-based projects and start-ups. More than half of top managers admit that blockchain will be instrumental for the success of financial companies, according to a study carried out by Accenture consulting company that focuses on strategic planning. Accenture analysts have concluded that blockchain will help save up to $20 billion in the world banking sector by 2022.
Banks have continued to remain ahead of the technology curve because of the ever-increasing regulatory requirements and the competition in the BFSI domain. The banks handle enormous amounts of information with a wide range of services and concerns in the industry. It is not just hard to track information, but it is also a challenge to find out which information is valuable. This increases the need for tools that allow banks to use the myriad information available.
Over 60 percent of the blockchain sector accounted for in 2017 for the BFSI sector. The growing use of blockchain technology among financial institutions is the primary factor that increases market growth in a number of different applications, from cross-border payments and wallets to digital identification. The technology also facilitates the customer's omnichannel system and minimizes transaction time.
Due to the growing investment in the blockchain market space, the blockchain market is expected to exceed $16 billion by 2024. The venture capitalists and angel investors use private equity finance and ICOs to invest in blockchain-based startups. The venture capital investment was increased by more than 50 percent in 2017. In this way, the new players are encouraged to work on the latest technology and explore new applications and business models.
Banks will still have barriers to overcome, but the technology will help the banking sector save time and money, as well as improve customer satisfaction with the ability to deliver full accountability, transparency, and superior security.
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