How Blockchain Technology Is Transforming Financial Services

How Blockchain Technology Is Transforming Financial Services
Blockchain technology refers to a public, dispersed and distributed ledger utilised for recording transactions beyond many computers under a network. Blockchain technology is considered secure and transparent, and people can’t change it only because of its properties and designs. This rapidly growing technological advancement in the financial sector has allowed currency transfer with so much confidence that it has made transactions reliable and secure. This technology is frequently renowned as the backbone of digital currency. As a decentralised and secure ledger system, it has undoubtedly revolutionised how financial transactions are made and conducted, improving security, minimising cost, and enhancing efficiency. Several properties are discussed below, which ensure the advantages of blockchain technology in the financial sector.

Some of the features of why blockchain technology has been considered to transform the financial sector are discussed below –

Some of the financial organisations which utilise blockchain technology

Financial services have rapidly increased the acceptance of blockchain technology. Many companies have adopted this advanced technology, invested in blockchain stocks, and are encouraged to utilise it more.
American Express is a company which is a financial institution and payment network providing services for loans, banks, charges and credit cards. Recently, it has implemented blockchain technology into the popular program of the company called Membership Rewards. This company has built its blockchain in-house while working with Hyperledger and examined with Boxed, an online platform for the delivery of groceries. Adopting this technology also helped merchants to provide more points depending on a more significant number of factors, like the products bought. The company credits points to the customers whenever they purchase any product that meets the company’s conditions, and the merchant is billed with the help of smart contracts.

Barclays PLC is one of the multinational banks which has done a lot of research before implementing blockchain technology. It has examined the utilisation of smart contracts in the company so that it can trade derivatives like options and futures. If stock exchanges use smart contracts for derivatives, it will cut down the time to set up the contracts. Further, the banks filed a legal application to utilise blockchain technology in the smoothening of the process of KYC. The bank, along with several other banks, is an investor in Fnality, which is a project that helps create digital currency in the US versions and some other currencies. The company’s main goal is to enable and adopt blockchain technology for cheaper and faster transactions.


Blockchain technology has been playing an important role in restructuring the landscape of financial services. This is so as financial services are continuously adapting to the digitalised era. It has helped streamline the system of payment and regulatory compliance. It also can modify the models and practices utilised in the business, ultimately giving rise to a new era in financial services by promoting transparency, efficiency and security. Moreover, this technology can encourage financial inclusion and foster economic growth, which enhances the productivity of businesses by creating benefits. It also helps society and individuals. Adopting blockchain technology has gained so much encouragement and has motivated financial services to adopt this advancement. It will surely help financial services industries reshape themselves in the future.

Author bio: Mark Edmonds, an old pro at Academic Assignments, is committed to raising students’ academic encounters. With a significant comprehension of arising advancements like blockchain, Mark has practical experience in clarifying complex subjects. His obligation to conveying the greatest assignment writing services guarantees that students get thorough help with their academic interests. Mark’s mastery and energy for education make him a believed asset for students looking for direction in exploring the steadily developing scene of blockchain and its transformative effect on financial services.

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