A 2019 Gartner report forecasts the progress of blockchain technology over the next decade, defining the ‘20s as a period during which enterprises will shape the future of this technology by implementing their own small scale projects.
These proof-of-concepts will largely handle internal processes, such as interdepartmental communication, financial transfers, and other operational procedures, as industries build the networks and infrastructures necessary to support a new global market, driven by this transformative technology.
Over the next few years, banking sector expenditures are expected to account for 30% of all global blockchain spending, which may reach as high as $15.9 billion in 2023.
Blockchain will drastically change the financial services sector, but early adoption and adaptation may secure market space for companies able to identify the unique operational and business opportunities it presents. It’s no surprise that surveys show a near unanimous interest in blockchain exploration among executives at some of the world’s largest international banks.
Blockchain is slated to revolutionize the financial services sector.
Mitigating the impact of this change depends on early integration and identifying new operational and business opportunities.
🔗Benefits of Blockchain Technology to Financial Services Companies
It’s no secret that blockchain technologies will shakeup any business that’s primary function is to facilitate financial transactions. With transparency being one of the primary benefits of using blockchain, the value of low visibility and hard to trace operations currently offered by corporate financial institutions is bound to decrease.
However, blockchain does open a number of new business and operational opportunities for financial service companies able to adapt to the changing global market.
Operational Efficiency The ability to make real time global trades increases transactional volume while decreasing administrative oversight. This can improve processing times up to 80%, according to Bain & Company reports. Blockchain may also allow for more seamless customer and employee onboarding.
Data Accuracy and Availability By removing personal responsibility for storing and maintaining their own record of financial transactions, financial institutions can better trust and access important data. This will prevent dispute claims, mitigate liabilities that arise from keeping inaccurate records, and allow better access to formerly disparate data that can steer the direction of other advanced technologies.
Security Data stored within the blockchain is immutable, encrypted, and highly distributed. It is virtually immune to DDOS threats, and other forms of fraud.
🔗How to Start Your Blockchain Journey in 2020
In October 2019, The Industrial and Commercial bank of China submitted 41 blockchain patents for technologies largely used to promote internal operations, including financial system security, expanded node resources, and cluster computing support.
Companies are now preparing themselves to join the inevitable global blockchain network by implementing manageable, scalable solutions to support advanced internal operations and better manage their data.
As more and more leaders are discovering that emergent advanced technologies, such as Artificial Intelligence, Machine Learning, and AR/VR, depend on data utility. Investing in blockchain today is not only necessary for keeping pace with our evolving trade system, but is an integral part of any financial insitution’s holistic digital transformation.
Take this opportunity to set your company up for success in the coming decade. By working with This Dot Labs, financial institutions learn more about how blockchain can support their unique operational needs, plan a pathway for its place in their future technical programs, and even start implementing some of the world’s most cutting edge technologies into your daily workflows.
Blockchain will revolutionize the financial services sector, and the future success of your enterprise depends on its strategic integration. Start your digital journey now, and learn how to leverage this technology to increase efficiencies, decrease operational costs, secure your financial operations, and create new business opportunities for your company.
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