Blockchain is one of the swiftly emerging technologies in present world and none of the sector is untouched from this extravagantly amazing technology. Especially this technology is having a great emphasis on fintech sector. In current era, almost 77% of financial service providers are incorporating blockchain technology to enhance their service qualities. If integrated in the right manner, blockchain can bring robustness to any large retail banks. To know how blockchains are helping fintech sector, first you need to understand what is blockchain and how does it work?
What is a blockchain?
It is a public ledger which is built by collecting all data available on internet. The information in the blockchain is not confined to any number, name or address, rather it comprises details about the transfer of money, personal identities, official or nonofficial agreements between different parties. Each information in this structure is stored in the form of blocks with a capacity of 1MB each.
Applications of blockchain in fintech sector:
• Trusted payment solutions
• Disrupting digital insurance
• Kyc verification
• Simplification of remittance process
• Eliminate dark tactics of stock market
• Credit scoring
• Records storage and management
• Faster processing speed
• Eliminating audit trails
• Supply chain financing and management
Few of these are briefed below:
KYC is one of the biggest aspects in national stock exchange sector. It allows banking industry to record electronic details about each transaction along with authentication and verification. In this process, blockchains is the backbone which allows the finance sector to record and track the details efficiently.
Supply chain management:
Supply chain management is one of the most tedious works in the fintech sector, where you need one to one detail of each product delivery and capital transactions, but blockchain has made it much simpler. It has increased supplier inventory levels, creditworthiness, digital purchase order receipt and approval, digital invoice receipt and approval, and more.