The FS (Financial services) industry has been the industry to develop the earliest and have the most traction with Blockchain technology. This is clearly related to Bitcoin, and the fact that after the financial crisis, there was a possibility to change the financial systems and currencies across the world. Of course, this has not happened, and the Bitcoin Blockchain has led to many new use cases for the FS industry and for finance organizations worldwide.
A few high level examples:
- Asset transfer
- Contractual arrangements
- Letters of credit
- Invoice factoring
Financial transactions benefits and outcomes
There are many benefits for using Blockchain technology for financial transactions such as:
- Immutable figures, smart contracts and transparent, shared data will transform financial transactions.
- As this technology evolves, the use of blockchain technology will:
- Speed up the processing of transactions
- Reduce the occurrence of fraud
- Eliminate intermediaries for holding money in a contract, while the funds flow from one party to another
A great quote from dataconomy of why Blockchain is important in Financial transactions:
“(Blockchain) it has an opportunity for a serious takeover in finance and purchasing. As a means of reducing costs, improving efficiency, controlling fraud, and boosting transparency, blockchain has tangible, real-world benefits for procurement functions – whatever the market or business.
Blockchain allows purchases to be representative as immutable items on the blockchain. When a supplier approves a purchase order, they are immediately committed to the cost listed. They could never issue an invoice that would be more or less money than the recorded purchase order.”