What effects Blockchain will bring in the Banking sector by 2020?

With the introduction of the blockchain baking sector is changing rapidly. The main motive of this technology is to grab public attention. It is believed that blockchain will be implemented in various types of industries like financial industries, voting systems, money investment, etc. But if we look at the banking sector then I must say blockchain is expected as the revolution for the banking sector. And at the end of 2020, it will take the banking sector to the next level.

If the system will accept blockchain completely then the traditional banking will become digital for sure.

If you want to know what will happen with the help of blockchain in the banking sector with the coming years then stay with me in this article until the end.

  1. Everything will come in your hands with the bit of old banking

These days mobile phone plays an important role in the life of human being. A mobile device is considered as the personal assistance or information storage area for people. So, keep this in consideration blockchain technology introduces some feature which will make your mobile phone your personal wallet as well. Yes, you heard it right in future of banking physical wallets will disappear and digital wallets will take their place. Digital wallets will allow you to make payments through them, and do all the other things which you have done with your traditional wallets.

This will also keep your money safe. In case if you lost your phone then the security features of blockchain will never allow the third person to access your wallets without your permission. This will be possible because to access the wallet some identification of the owner will be compulsory without the identification nobody can open the wallet.

  1. Banks may disappear

The future of blockchain will become the end of traditional banking systems. There will be different financial infrastructures which will work with the combination of digital and traditional banking where obviously digital banking will always be dominant. The work of the traditional banking system is just to open an account of the customer, issue paperwork to the customer like chequebooks, Debit/credit cards, etc. When it comes to digital banking the person can share money and pay their bills with the help of their mobile phones only. In other words, the bank who will adopt this technology will survive in the industry and who will not adopt the technology will definitely be lost in history.

  1. Less staff will be needed for the banks

Defiantly if the things will go digital then banks have to hire limited staff to perform the limited task. This will save the staffing cost of the banking sectors. According to some predictions of experts, it is believed that only 20% of the total staff will remain in the industry and others have to say goodbye to the banking sectors. If we see from the perspective of the employment then blockchain will be going to make so many people unemployed as they know only banking they will get other jobs by walking on the many difficult roads.

So we must say the blockchain has consisted of so many good points but it also consists of so many bad points as well. Technology will always be the reason for unemployment among people and nobody can change this fact.

  1. Efficiency and increment in the fields of API

The digital system of blockchain applications dependent upon the API’s (Application Program Interface) of the applications. This means there is a possibility of an increase in the number of chatbots and artificial intelligence will be used for the acceleration of the ongoing process. It is also figured out by the experts that the API system will become at the top of the banking system. This means the customer’s experience with the bank will be enhanced and they will be satisfied with the system more. Plus the chatbots will also help them t get the answers to their questions according to the technology.

Read: Blockchain and API’s – for Secured Data

Also with the help of API system the security of the transaction of I can say money transfer from one account to another increase. People don’t have to worry about any kind of frauds, but there is always a risk of hacker’s attacks due to the involvement of the internet. As it is claimed by the technology that the blockchain is the safest way to do money related transactions but nobody can give 100% guaranty for this. There are always some loopholes left in such kind of system.

  1. Lots of services at less cost

Bank customers will be able to enjoy so many services with less. With the help of blockchain development services, the rate of money exchange will be very low due to which people will enjoy the services as much as they can. If we look at the traditional banking then you must see that you have to pay extra charges to the bank to maintain your records and transactions. And if you are using the online services of the bank like internet banking, mobile banking, etc then the bank will charge an extra fee from you. But when the blockchain will become an essential part of your bank then you will be able to do online payments from one application only without paying the additional cost for the third party services. Only one application of the bank will be able to provide you with the whole banking thing in your hands.

Conclusion

The revolution of the banking system with blockchain will not demolish the traditional banking completely but it is hoping that the banks will get a little bit more digitalized to provide their customers with better banking experience. If the escalation of blockchain continuous at the same speed, then the day is not so far when people don’t need to visit the bank to track their transactions. But it is also bad news for the staff members of the banks. Feel free to share your point of view on the blockchain through comments and for more stay tuned…..

Author: Muthamilselvan is a passionate Content Marketer and SEO Analyst. He has 4 years of hands on experience in Digital Marketing with IT and Service sectors.

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