Fintech is one of the largest sectors that have acknowledged the use of blockchains and virtual currencies such as bitcoin and others. Although much has been said about how disruptive blockchain can be for companies, Fintech has already invested heavily in the innovation and continues to show how emerging technology can be of help to the industries.
Blockchain technology has been trending more often nowadays with most people highlighting ‘game-changing’ solutions to the challenges facing various sectors of the economy such as financial institutions, supply chain logistics, media, travel bookings and rentals among others.
During the recent 2018 World Economic Forum held in Switzerland, the merits of blockchain technology were among one of the main agendas and the emerging companies were encouraged to embrace the new technology.
According to Dr. Kay Swinburne, the British MEP and vice-chair of the influential Economic and Monetary Affairs Committee (ECON) blockchain holds a great promise even though the industry is still learning the technology.
A survey conducted by the Price Water Coopers on the financial service sector and Fintech reveals that about 77% of the financial services industry plan to adopt blockchain by 2020. Banks have also shown an interest in the emerging technology, with about a third of the surveyed institutions noting that they are at the initial stages of developing strategies to integrate blockchain in their operations. Hence, Dr. Swinburne believes that the technology has critical solutions that can aid industries.
The need for greater openness was evident in the financial crisis in the period of 2007-2008 and blockchain is providing that full transparency to the public ledger whereby all the transactions or entry to the ledger are visible to all the users.
In addition, highly publicized breaches of most financial firms also highlighted the need for better security and blockchain’s decentralized network architecture makes it difficult to hack or attack and hence it’s more secure than centralized database systems.