Blockchain-Based Fintech Transformation: Advantages & Use Cases

Blockchain-Based Fintech Transformation: Advantages & Use Cases

You may have heard about terms such as ‘Blockchain’ and ‘Fintech.’ We will understand what each term denotes and how both concepts are integrated together and harnessed in real time to achieve superior as well as tangible results.

Fintech stands for technologies in the finance sector that enable seamless financial services. Blockchain makes it possible for  users to implement peer-to-peer transactions without a central authority such as financial institutions. Simply put, Blockchain is a decentralized peer-to-peer ledger. The technology’s hallmark is that it securely stores all transactions in a publicly accessible computer network.

The Market Trend

Blockchain and Fintech are increasingly being used together to achieve synergy. Today a number of fintech entities leverage blockchain to provide better services and ramp up the security as well as speed of transactions. Blockchain is utilized in FinTech as a popular option to safely dispatch money to an individual or organization without the help of a financial services provider.

The drawbacks of contemporary financial systems are the low level of transparency, high fees as well as long transaction periods. Thankfully, blockchain based financial solutions efficiently and effectively address the existing shortcomings.

Advantages of Blockchain Financial Technology

  • Expand Customer base

Blockchain makes available finance related services to people not having access to banking services or having limited/inadequate access to banking services. Everybody including those not eligible for a conventional bank account can avail of financial services powered by blockchain technology.

  • Ramped up Efficiency

For your information Blockchain solutions are digital in form and function. This eliminates paper-based processes. As a result, transaction as well as logistical expenses come down. The probability of errors is minimized. This enables superior efficiency in terms of time, money, and effort.

  • Make Possible More Transparency

As a result of the transparent as well as immutable characteristic of blockchain technology, there is real-time visibility of relevant transactions. There exists the facility to trace all activities. This boosts trust among all involved entities.

  • Ramped up Scalability

With blockchain solutions becoming better, it is now possible to scale the solutions as per demand or need. Now blockchain powered fintech solutions offer higher transaction throughput.

  • More Secure

Two of Blockchain characteristics are immutability and decentralized architecture. As a result, the possibility of tampering with blockchain records is extremely remote as well as difficult to execute. Security is continually being bolstered with more regulation and more sophisticated security protocols.

  • Lowers Operational Expenses

The use of Blockchain means that there is no requirement of third-party middlemen in financial operations. As a result, fintech entities as well as their clients have to bear lower transaction charges. This is indeed a win-win scenario.

  • Generate Higher Revenue

While Fintech organizations may have to initially invest in integrating blockchain technology with their existing solutions in the long run they will reap high return on investment. As more entities trust blockchain technology and there are advancements in blockchain related technologies the customer base will increase. With improved user-friendliness, automation of processes as well as optimum performance the fintech company’s popularity will grow in leaps and bounds.

Use Cases of Blockchain with Fintech

  1. Bankex is an asset management tool that leverages blockchain. One of the prominent features is tokenizing of real-world assets including real estate as well as securities. As a result, fractional ownership is made possible. Also, these markets can gain enhanced liquidity.
  2. Coinbase is a leading digital payment solution that leverages Blockchain. The former facilitates enterprises to integrate cryptocurrencies for making payments. The result is a superior and user-friendly digital payment experience.
  3. Veem provides secure as well as efficient cross-border transactions. The organization leverages blockchain technology to minimize expenses as well as accelerate international payments. Prominent functionality offered includes simple reconciliation processes, real-time monitoring as well as real-time observation.
  4. Chainlink makes possible the implementation of complex and important financial agreements such as loan documents as well as insurance claims. This is made possible by having accurate as well as authentic data available to smart contracts. Chainlink links blockchain networks to real-world information repositories.

As you may have realized this is an opportune time to use blockchain in fintech. This is necessary for better performance, adherence to existing regulatory requirements and retaining the competitive edge in the prevailing market. So, you need to look out for suitable blockchain powered fintech solution developers.

Why Us

CoffeeBeans has both the expertise and experience in developing high quality Blockchain solutions. We have a diverse pool of motivated and talented developers who will craft Blockchain solutions within the stipulated deadline and which fully fulfill client expectations. CoffeeBeans follows a set of quality and mature processes to produce the deliverable(s). Our quality assurance team ensures that the solution has all the promised functionality and is free of errors and/or inconsistencies. For your knowledge, we offer support even after the project is delivered and deployed. Our maintenance team is available round the clock to fix bugs as well as performance issues. If you later wish to shift to another technology or modify the solution we are at your service.