Bird’s Eye of Blockchain in Banking by 2020: DLT Tech Integration Into Traditional Banking
Traditional banking has recently begun adopting Blockchain technology, improving customer trust, ease of use, and saving money for the banks involved.
With an obvious capacity to revolutionize many systems, Blockchain is predicted to bring the banking sector to the next level by 2020 – if traditional banking is smart enough to widespread adopt the tech for their transactions.
Banks implementing Blockchain wallets for mobile phones is one of the many ways our lives could become safer and easier when Blockchain integrates with banks worldwide.
Because digital wallets require inscription keys backed up by identification, it will make funds significantly safer and allow our phones to be a better source of payment than the average wallet. Currently, you can make payments with banking apps and a digital debit card but anyone hacking into your phone can have access to this.
Current banking systems require a significant amount of energy and manpower to maintain. As Blockchain adoption into the banking sector becomes more widespread, the largest estimates say this could result in as little as 20% of total staff even remaining employed. This could be seen as concerning, but could also mean new job market growth as has happened before.
Less energy consumption, less employees, and faster use brings with it savings for banks which will eventually translate to savings for customers.
In particular, it is good news for those of us concerned with how our energy consumption is affecting our planet.
The sophistication of technology services through Blockchain also means a broader range of services can be provided more reliably and at a lower cost. For example, the rate of money exchanges will be lower because you won’t be supplementing the cost of banks maintain records and transaction histories.
There will also be no need for fees on banking apps because Blockchain will eliminate third-party services. One application will be able to provide users with everything they need at less cost to the bank and the user and more transparency than the current system provides.
Radical free tech thinkers backing the original Blockchain based company, Bitcoin, hoped that cryptocurrencies would make traditional banking obsolete.
But with banks adopting Blockchain tech into their industry on a large scale, that shouldn’t be a risk. Their services will become more eco-friendly, faster, cheaper, and more trustworthy, ushering traditional banking fully into the digital age.