The blockchain has been hailed as a major disruption across industries, with many pundits claiming that it has the potential to revolutionise the banking and finance sector. As payments and fintech consultants, we wanted to share with you a primer on what the blockchain is, and how it could influence the current system.
In our blockchain in banking primer, we discuss:
- Payments as they are today: how the four-party scheme works, how the SWIFT payments network works, and how correspondent banking works.
- What payments could be tomorrow: how the blockchain could simplify the overall payments process.
- What is the blockchain: We talk a little about the blockchain and how it is
- decentralized, or activities are not managed by a central body,
- distributed, or data is shared, synced and replicated across multiple locations ,
- immutable, or every transaction is recorded,
- transparent, or all transactions are visible to all users,
- secure, or that the system is protected by design, and
- public.
- We delve into the block and the chain, and how they work together.
- We then look at what can make using the blockhain in banking a reality, namely,
- low-cost conversions,
- fast conversions,
- hassle-free conversions,
- funds never getting lost,
- funds always being traceable,
- someone being held responsible,
- funds being accepted, and
- funds moving quickly.
- Lastly, we highlight three key trends that we think you should keep an eye on:
- The rise of stablecoins
- More big players entering the crypto space
- ICOs making way for STOs.
If you’d like to know more about Penser, please contact us, or visit our due diligence, digital transformation and strategic planning service pages.