Today, in order to make a bank transaction there needs to be certain agreements between different banks. This process can be rather slow and could take up to a couple of days to take place and there is also the risk that one of the parties could revoke their agreement. This period is known as the settling period and the main issue is that it costs the financial industry really heavy.
However, RecordsKeeper could reduce or even eliminate this process entirely due to its digital factor. Some of the other features include increased transaction security.
Here are few areas of the industry most likely to see an effect are:
Clearing and Settlement
Securities play an important role than a complex use of Blockchain's cryptocurrencies. They are a major factor in both mechanics and legal environment. The exciting key to Clearing and Settlement is that the central authorities govern the current industry structure. However, it is not a certainty that the decentralized blockchains can work in a centralized operation. It could happen due to the implementation runs as permission-ed by this central entity above the market convenience. The stock exchange companies and banks are now working with blockchain orientation in order to make transactions and transfer much easier and at a global scale. Blockchain experts and specialists maintain these chains to support and bring the digital awareness all over the world and to people depending on blockchain and as their right hand to get things done. The main interest, for now, is clearing and settlement, but blockchain solutions are not evident in this space in the first wave. It's more likely to be noticed in the preceding waves. But it is up to us we to remember the crucial role these institutions play in financial markets.
How do Clearing and settlement work?
● Savings done through streamlined back-office processes
● Identity verification for the certified transactions
● Keeps a record of transaction history
● Users can trade with each other without the need of any third party person.
● Other useful help is automating buy, sell and supply transactions on a Business to business and Business to consumer basi
Trade finance
Trade finance is all dependent on the bills, tax payment, registrations, letters of credit etc. Blockchain can offer the best solution for this, all the vendors can access the documents from the Blockchain which is verified and cannot be tampered.
Identity
In banks, individual identity needs to be verified at every process such as for applying for a new account, loan or a credit card, if all the identification documents such as the aadhar card, pan card, residential proof all are uploaded on the Blockchain. The identification process will be fast and secure, Blockchain can play a major in the identification process of an individual.
Blockchain can really impact the banking industry and help in decreasing the scams which are occurring more frequently these days, such as the Nirav Modi scam in Punjab National Bank.
To find out more pieces of information, you can check out the RecordsKeeper website at https://www.recordskeeper.co/
or Telegram Channel and keep track with the latest updates and news.