{"id":3637,"date":"2020-09-10T17:28:23","date_gmt":"2020-09-10T15:28:23","guid":{"rendered":"https:\/\/holytransaction.com\/blog\/?p=3637"},"modified":"2022-12-12T21:32:18","modified_gmt":"2022-12-12T19:32:18","slug":"how-blockchain-technology-is-changing-the-banking-industry-forever","status":"publish","type":"post","link":"https:\/\/holytransaction.com\/blog\/2020\/09\/how-blockchain-technology-is-changing-the-banking-industry-forever.html","title":{"rendered":"How Blockchain Technology is Changing the Banking Industry Forever"},"content":{"rendered":"<p class=\"p2\">By far the biggest threat to banking in, well, living memory, has been blockchain technology. More specifically, cryptocurrency, but we\u2019ll focus on the technology as a whole since this is what has been driving the movement.<\/p>\n<p class=\"p2\">All the tech companies in the world have been using it, including Google, Facebook, Apple, and Amazon, and a vast number of FinTech services, which is why it\u2019s being seen as such a threat to traditional banks, but why is this happening?<\/p>\n<p class=\"p2\">What\u2019s so important about blockchain?<\/p>\n<p class=\"p2\">In today\u2019s post, we\u2019re going to explore how and why blockchain technology is making such a big difference to the traditional banking format, and how the future of this industry is looking.<\/p>\n<div id=\"attachment_3638\" style=\"width: 810px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3638\" class=\"wp-image-3638 size-full\" src=\"https:\/\/holytransaction.com\/blog\/wp-content\/uploads\/2020\/09\/Blockchain-Revolutionizing-Banking.jpg\" alt=\"Blockchain-Revolutionizing-Banking\" width=\"800\" height=\"400\" \/><p id=\"caption-attachment-3638\" class=\"wp-caption-text\">Source: <a href=\"https:\/\/engineerbabu.com\/blog\/blockchain-revolutionizing-banking-financial-markets\/\">Adarsh Goldar<\/a><\/p><\/div>\n<h2 class=\"p2\"><b>How Blockchain Technology is Changing Payments<\/b><\/h2>\n<p class=\"p2\">First and foremost, and by far the biggest form of change that blockchain is bringing into the world, is how financial payments are made and the way modern-day payment systems work. Whereas traditional banks can take a few working days to make a payment, meaning some international payments can take a very long time, <a href=\"https:\/\/holytransaction.com\/page\/why-are-bitcoin-transactions-irreversible\">blockchain payments<\/a> are instant.<\/p>\n<p class=\"p2\">Since all you need is an internet connection to make the transaction, most will be handled and completed in a matter of minutes. These transactions can happen across borders to anywhere in the world, are extremely secure (especially when compared to traditional methods) and happen pseudoanonymously.<\/p>\n<p class=\"p2\">Due to the nature of <a href=\"https:\/\/holytransaction.com\/page\/the-capabilities-of-the-blockchain\">blockchain technology<\/a>, the costs involved in these transactions are usually very small, typically only several cents per transaction. This means that sending money across to the other side of the world is far cheaper than traditional wire companies, such as Visa or Western Union.<\/p>\n<p class=\"p2\">In the same way, remittances are also changing. Whereas overseas <a href=\"https:\/\/holytransaction.com\/blog\/2014\/06\/remittance-relief-bitcoin.html\">remittances<\/a> are expensive and long-winded, with high processing times and the fact the money can be stolen, taxed, or subject to legal issues along the way, a blockchain process basically eradicates all these issues. There are dozens of companies already set up and operating to offer these services.<\/p>\n<h2 class=\"p2\"><b>The Way Account Managing and Deposits are Handled<\/b><\/h2>\n<p class=\"p2\">In the traditional way the world works, consumers tend to use banks to hold money in either their savings or checking accounts. Then, the bank will loan out the money being held to make money on top of the money you\u2019re saving, and the cycle continues. This means when you look into your bank account, much of the money you have isn\u2019t actually being held by the bank, but instead is out in other people\u2019s accounts as loans.<\/p>\n<p class=\"p2\">If every customer of a bank went to the bank and withdrew everything they had, the bank would collapse. It\u2019s a very fragile system that many consumers are unaware of. However, while this system isn\u2019t going to change any time soon, blockchain technology can make the management of this system far more effective.<\/p>\n<p class=\"p2\">Due to the benefits that blockchain technology provides, these account ledgers are far more secure, far more reliable, and far more accessible. This means banks can accurately manage their ledgers to ensure that they aren\u2019t taking out too many loans and will actively help reduce the risk of bank run, or the system crumbling.<\/p>\n<h2 class=\"p2\"><b>A Reduction in Fraud<\/b><\/h2>\n<p class=\"p2\">Fraud has always been a problem in the <a href=\"https:\/\/holytransaction.com\/blog\/2016\/03\/isitc-survey-reveals-financial-industry.html\">financial industry<\/a>, and it costs people around the world billions of dollars every single year. However, for the similar benefits, we\u2019ve spoken about above, blockchain is making things far more secure.<\/p>\n<p class=\"p2\">Since the vast majority of traditional banks are set up and organised around a centralised system, malicious people can target the centralised system to commit the acts of fraud. While there have been many measures to make the system as secure as possible, this isn\u2019t fall-proof, and statistics show around 45% of all financial institutions are prone to fraud attempts.<\/p>\n<p class=\"p2\">Blockchain is a <a href=\"https:\/\/holytransaction.com\/page\/why-is-decentralized-currency-better\">decentralised system<\/a>, which means it\u2019s everywhere and nowhere at the same time, which makes it incredibly difficult to fraud and theft to take place. There\u2019s no single point of access like there is with a centralised banking system and trying to get into such a system means diving into layer upon layer of encryption, all spread out in hundreds of thousands of locations.<\/p>\n<p class=\"p2\">What\u2019s more, every single change that takes place on the ledge is capable of being seen by every other person and system that has access to the ledger. This means if any fraudulent activity takes place, everyone can see it instantly and correct it. This will help protect people\u2019s money and keep the system afloat.<\/p>\n<p class=\"p2\" style=\"text-align: right;\"><i>Katherine Rundell is a finance writer at <\/i><a href=\"https:\/\/academized.com\/\"><span class=\"s1\"><i>Academic Writing Services<\/i><\/span><\/a><i> and <\/i><a href=\"https:\/\/ukwritings.com\/\"><span class=\"s1\"><i>Essay Writing Services<\/i><\/span><\/a><i>. She writes about blockchain and banking and aims to help the world get educated about finances in a time where they can seem so out of control.<\/i><\/p>\n<p>Open your free digital wallet <a href=\"https:\/\/holytransaction.com\/app#!\/signup\">here<\/a> to store your cryptocurrencies in a safe place.<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>By far the biggest threat to banking in, well, living memory, has been blockchain technology. More specifically, cryptocurrency, but we\u2019ll focus on the technology as a whole since this is what has been driving the movement. All the tech companies in the world have been using it, including Google, Facebook, Apple, and Amazon, and a [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":3638,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,101,1452,496,497],"tags":[744,750,793,1155,1156],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.6 (Yoast SEO v22.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Blockchain Technology is Changing the Banking Industry Forever -<\/title>\n<meta name=\"description\" content=\"Blockchain technology can make the management of this banking system far more effective as blockchain payments are instant.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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