The global report published by Statista states that the worldwide spend on blockchain solutions will witness significant traction growing from just 1.5 billion in 2018 to almost 15.9 billion by 2023. Till date, the banking sector has recorded the highest percentage globally in terms of adoption and implementation. One of the major reasons for the widespread adoption of blockchain in BFSI is the superior level of encryption and transparency required to block the skyrocketing number of cyber attacks and frauds. Apart from creating a secure environment for financial transactions, blockchain as a technology has other significant benefits when it comes to banking and these are:

  • Blockchain technology has decentralized the ledger system thereby, speeding up the digital payments whilst minimizing the transactional cost.
  • Blockchain has efficiently eliminated the need for traditional gatekeepers in the credit domain.
  • Blockchain has made the transactions more real-time and yet very secure.
  • Blockchain has offered the feature of smart contracts that work as the client's right management tools for contract verification and digital enforcement.
  • Blockchain involves cryptocurrencies that have made financial trading faster.
  • Blockchain has enabled banks to trace complex transactions and eliminate the scope of fraud and error even before the transaction is complete.

Apart from just transforming the daily modus operandi, the blockchain technology has paved the way for newer opportunities of business networking in Banking and overall Fintech domain. The blockchain technology has unleashed a great scope for innovation and digitization in the entire financial sector. Here are some of the many interesting ways in which Fintech evangelists are bracing themselves to leverage the Blockchain technology. 

  1. Blockchain as a Service (BAAS)- The blockchain technology can be leveraged as a platform to develop one's cloud-based financial products. 
  2. Federated blockchain with customization option- The blockchain network can be classified into Private, Public and Federated networks. With customization becoming the key, banks will gradually open themselves to federated blockchain model to improve the customization of their private network. 
  3. Interoperable Data Network- The interoperability feature in the blockchain has offered a great deal of flexibility to the banking and financial sector for improved data sharing in a super encrypted environment.
  4. Integration with Artificial Intelligence- The integration of AI with the private blockchain ecosystem will enable banks towards process improvement in terms of data monetization and storage.
  5. Minimizing the remittance costs- The blockchain technology eliminates multiple players involved in the process of remittance. The funds transferred via the block chain network involving two financial partners can drastically minimize the remittance costs.

 Blockchain is going to drive the BFSI sector in the years to come. Creating, a soaring need for blockchain evangelists to power banking and fintech. Since blockchain is a very specialized technology, any professional wanting to leverage it must undergo a formal education in the field. Blockchain enthusiasts must explore the six months Certificate Programme in Applied Blockchain offered by IIM Indore. This course has a meticulous mix of both technical and management aspects of blockchain technology that will offer a professional an edge over others.