Blockchain and it’s Growing Significance in the BFSI Sector
Welcome to Blockchain
Let’s understand the reality around Blockchain. Bitcoin is not Blockchain & it’s one of the Use cases of Blockchain as its underlying Technology. There is more to Blockchain than moving money. In recent days, the various countries have seen a dramatic increase in Blockchain adoption, awareness & the government’s openness to the technology can translate to a lenient regulatory view towards Blockchain Technology.
Blockchain has the potential to transform our lives through its benefits Viz. Faster settlement times that are user-optimized, Lower collateral requirements & counterparty risk, Improved contractual term performance, Greater transparency for regulatory reporting, Better capital optimization, Reduction of Operating Costs & Its incorruptible.
Blockchain technology & its derivatives are continuing to mature, but a number of enabling challenges need to be addressed for its mainstream potential to be realized around the world.
1. Blockchain skillset & Matured start-up availability to experiment
2. Technology Maturity & required standardization
4. Regulation & Government Adoption Support
5. Develop Use cases for potential benefits to demonstrate real commercialization potential.
Let’s consider these challenges as driving forces & these driving forces will bring on multiple innovative & cost effective use cases e.g. Clearing & Settlement, Payments, Smart Assets, Identity Management, Data Management & Data Protection, AML & KYC, Governance, Sharing Economy in Indian Banking Sector!
Collaboration is the Key
The financial services infrastructure will be radically changed by Blockchain technology. A recent trend is towards collaboration i.e. Partnerships between banks, Technology companies, Fintech, and regulators will bring benefits to consumers and the financial system. Bankchain is one of such massive platform among State Bank of India, ICICI Bank, DCB Bank, and 30 More Members. We have seen collaboration among competing for financial institutions is helping to overcome early challenges associated with the technology & it will ensure full economic and social benefits are realized.
Certainly, after 5 years we will not talk about Blockchain But its use cases just like we don’t talk about the internet but its Usecases over browsers. Post-Demonetisation, UPI and Many other Movements in Innovations, Blockchain & its underlying technology would be “Radical Change Agent” in India.
-Head Innovation & Architecture