In the financial world, the need for data to be accessed quickly and easily, yet securely, is paramount.
Data is a gold mine for fraudulent actors and it is difficult for financial institutions to implement the security needed in line with international regulations that exist.
Financial institutions around the world are looking to blockchain as a solution to help build the foundation of a future-ready financial institution.
Identity theft and cybercrime cost individuals and companies billions of dollars each year. Research by Javelin indicates that banks worldwide may lose between $15-20 billion from identity fraud in a single year.
Blockchain-based identity is an effective and cost-effective paradigm for fraud prevention. Digital identities become certified credentials that are completely portable and user-owned. They can travel with a client wherever they happen to interact with a regulated entity. The vendor, payment, identity of the buyer, and bank account from which the payment is being pulled are all verified.
Financial institutions need to reduce the cost of on-boarding new customers and the general overhead throughout a customer lifecycle.
By its nature, blockchain reduces friction, increases security, enables transparency, and creates opportunities to reduce costs and enable new revenue streams. Globally, financial institutions are taking notice.
Over 200 banks worldwide are working on or have begun using blockchain. Nearly half of the 26 public banks in China have deployed blockchain for a variety of uses, according to CEBNet.
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