Blockchain and the Banking Industry
As the world is moving towards digitalization, the transformation towards blockchain is rapidly increasing. Nowadays, industries are keen to employ blockchain technology for their businesses since it has the potential to improve efficiency and in turn, save money.
As we have discussed in previous articles, blockchain technology is on its way to revolutionizing a number of industries with its unique and immutable features. Now, blockchain technology has stepped into the banking industry as well, breathing life into a sector that has received its fair share of scrutiny in recent years.
The banking industry involves the safe handling of credit, cash, and other financial transactions. Banks offer a safe environment for storing extra cash and credit. Blockchain technology is capable of bringing great innovations to the banking sector through its competitive nature.
Issues Faced by the Banking Industry
Like every industry, the banking industry faces a variety of problems. Some of them are mentioned below:
Since the world is moving towards digitalization, each payment and transaction is being digitalized, resulting in an increased responsibility by the banking industry to record and monitor details periodically.
The inclusion of third-parties during transactions can take 2–3 days or even a week for payment process completion. The time taken to process a single transaction is very long, resulting in client dissatisfaction.
The inclusion of third-parties and prolonged transactions leads to greater costs for every transaction. These costs are enormous which creates challenging circumstances for the banking industry to engage with their clients.
Difficulties with Record Management
The number of users in the banking industry is increasing on a daily basis. The management of their transaction records is becoming increasingly complex, and ultimately, this increases the payment process time.
Blockchain in the Banking Industry
Blockchain technology provides greater security to exchange data and money. The utilization of a blockchain results in safer, decentralized, transparent, secure, and cost-effective transactions and operations. It enables the entrusted parties to come to an agreement without any need for a middleman.
Furthermore, it will enable the banking industry to automate a number of manual processes such as the distribution of contents of a will, claim processing etc. Some benefits of blockchain in the banking industry are given below:
Blockchain enables you to view, share, and store digital information with high security. Each transaction is carried via cryptographic encryption. Transparent decentralization is also taken care of. So, in this way, the whole transaction is tamper-proof and hence, security and transparency are achieved.
The utilization of blockchain technology eliminates the need for third-parties, resulting in a reduced payment processing time. This in-turn minimizes the overall costs of the payment process.
Easy Data Management
Since blockchain is a decentralized technology, its utilization for transactions and payment records storage will make it convenient to retrieve and store data, resulting in a decreased payment processing time.
Know Your Customer (KYC)
With the increasing technological developments, the threats of financial fraud are also increasing. Know your customer is an effective solution to these problems provided by blockchain technology. In the KYC process, the data is collected from multiple service providers authorized along with the cryptographic stores with a decentralized network.
Though BigBang Core is playing a vital role in transforming different industries, it is yet to fully immerse itself into the banking industry. However, BigBang Core is keen to assist the banking industry. With the integration of Blockchain and Internet of Things, BigBang Core will aid the banking industry to adopt secure practices. It will facilitate in preventing intruders or attackers from tampering with the identity, credentials, etc. of the clients. It will also allow the banking industry to operate without the need for third-parties, reducing the costs. It will help in cross-border transactions and will bring greater resilience to the banking industry. Furthermore, it will minimize the processing time for banks.
The following is a list of industries that are benefitting from innovative techniques of BigBang Core:
As discussed is previous articles, BigBang Core combines big data, the Internet of Things, and blockchain technology to create an ecological system that builds “Data collection, data transmission, data storage, and data analysis”. This will facilitate the companies in reducing the time and energy of manpower statistics and analysis, and also reducing the utilization of resources and energy, ultimately resulting in a cost-saving experience.
By combining the Internet of Things, blockchain, and big data technologies with agricultural data, BigBang Core minimizes the work of record retention and maintains multiple systems. It has made it convenient to manage, process, and track every link from crops to accurate statistics, and to enhance the management efficiency of the agricultural supply chains, resulting in greater cost and time efficiency.
For recording the whole process of “production-packaging-logistics-sales” of bottled drinking water (including factory status, assembly line labeling, filling and capping, water quality treatment, etc.) on the chain, the blockchain technology and Internet of Things is employed by BigBang Core. The adoption of Light Wallet Service (LWS) and LWC makes the production environment on-chain transparent. Furthermore, it lowers the cost and provides greater efficiency.
For ensuring information security along with realizing characteristic of sharing, BigBang Core employs blockchain technology. It ensures the provision of solutions for the flaws in the parking field, including barriers gate systems, cloud payment systems, license plate recognition, access control systems, and other integrated solutions. It is committed to building a comprehensive urban parking management system for achieving effective operation of parking resources.
BigBang Core employs blockchain technology and traceability systems to record product data on-chain for ensuring the authenticity of the data. The data from the whole process of animal source, transportation, and sales is linearly closed for ensuring that the whole entity participating in the blockchain can see the information of each link with transparency, resulting in tamper-proof information.
BigBang Core is proud to announce that it provides rail transit solutions. Depending upon the original track safety inspection system, BigBang Core uploads data to the blockchain as a backup snapshot through the Light Wallet System (LWS) deployed on the Huawei Cloud. The data snapshot will be recorded permanently in the blockchain and cannot be tampered with. When the third-party system data is abnormal, or the data has errors or is lost, it can be compared with the data on the chain, so that the problem data can be traced and predicted in advance.
Like other industries, Blockchain technology is capable of adding improvements to the banking industry as well. It is striving to produce promising outcomes. BigBang Core is on its way to transforming different industries with its smart solutions. Although BigBang Core is just beginning in the banking sector, it will cover the industry more extensively in the near future. It may not happen overnight but blockchain technology is changing and will change a number of key industries moving forward.