Blockchain helps in banking as real time ,more secured, open platform that more securely transmit our data. They help banks not only for the reduction of cost for payment processes. Even they help in creating new products and services which generates new data and new streams. It’s a Decentralized process in which no middle party is needed in transactions as blockchain enables bank to keep data of all transactions showing publicly and transparently.
Banks have no need to rely on any network of services and regulatory bodies like SWIFT. They could simply did their transactions directly on a public blockchain. Blockchain stores information like who owns a piece of land or a bond. So storing immutable database record of ownership and enable transactions of asset among distrusting parties which is called Blockchain. Many banks in India like Federal bank uses blockchain which enables blockchain based trade finance operation. Axis Bank, RAK Bank, & Standard Charter Bank have connected with another blockchain network.
It helps banks to reduce loss of failure transactions and transform payments at big scale. As blockchain offers cryptography to add a layer in security of transactions which helps in no failure and loss of money cases. It provides better security as compared to an another systems. The technology is excellent for keeping track of transactions, and that may be useful in several areas. The speed is also an advantage of having blockchain in banks it provides speed in every transaction process. It’s not only about greater efficiency but also a new level of transparency and security.