Blockchain technology incorporates Dogecoin, Bitcoin, and plenty of other powerful currencies. With the help of its technology, it can maintain a record of each of the transactions that take place over the currency values, such as Bitcoin.
Blockchain technology is taking over the world at a breakneck speed and changing everything. The retail banking sector is also mending in a lot of aspects due to this technology. From payment transactions to how the money is raised to security in online banking, it comprises all.
As the banking sector is constantly evolving, bank employees will have higher chances of getting a prosperous career. If you also want to have a thriving career, you can opt for banking jobs. Institute of Professional Banking (IPB) is the perfect choice to help you with your selection.
In this blog, we have covered the role of blockchain technology and the ways by which they are influencing the retail banking sector.
Role Of Blockchain Technology In the Banking Industry
Blockchain technology has made a significant impact on the positive side of the banking sector. With its help, banks can determine the situation of the database without the need for a middleman.
It offers a ledger where all information is constant and available to everyone. In addition to this, it enhances data security, bank account verification, and customer ID verification process.
By reducing the requirement for middlemen from the banking procedures, blockchain technology has shown its advantageous side for the banking sector. Below we have provided the major impacts of blockchain on the retail banking industry.
Impact On Traditional Banking Methods
The banking system has the potential to outshine the requirement of the manual procedures involved in the banking fund transfer system. It provides secure transactions and assures clients of safer methods of fund transfer, and the transfer charges are also at a reasonable price.
Below are the following reasons for the implementation of the blockchain technology:
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Decrease Of Fraud
One of the major reasons banks indulge in blockchain technology is related to fraud. Most of the normal transactions are facing fraudulent activities these days. By getting rid of intermediaries, blockchain technology has made transactions smooth and safe.
Often money laundering is seen in the place where intermediaries such as stock exchanges are present. That is why the technology is working as a boon to the banking system as it protects the bank against the chances of cyber-attacks on the banks’ database.
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Improves Sending & Receiving
Sending and receiving money using traditional techniques is almost a complicated matter. Nowadays, blockchain technology is being used to support micropayments. Online wallet providers offer many perks for making micropayments using Bitcoin, the U.S. dollar, or any other payment method permitted by apps.
Being such a lucrative industry, everyone should try to get enrolled in the retail banking sector. Aspirants can take up a 90-day course known as the PGCRB course of IPB to prepare themselves.
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Makes Lending Easier for Lenders and Borrowers
Lending is an essential part of the retail banking sector. It is necessary that both the corporate and retail customers are able to pay their cash needs. Being one of the essential aspects to drive revenue, banks need to ensure that the lending process is seamless.
By virtue of blockchain technology, lending has become much easier. The reason behind this is the instant settlement of transactions. Moreover, this is also beneficial in terms of avoiding issues such as defaulting and double-spending.
Apart from this, it has also made the account opening process quick. Instead of days, it will take just a couple of minutes to open a bank account.
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Saving On Transaction Charges
Retail banks are looking up to blockchain because it helps banks to save a lot of money in the context of transaction costs. Blockchain offers transaction options without any involvement of certain costs due to currency variations. That is why banks are likely to grab this opportunity for their benefit.
By getting a hold of the PGCRB course, students can get complete guidance for their preparation for retail banking jobs. The scholars of IPB have years of experience in this field; they give a complete knowledge of the retail banking sector that will help you further.
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Confirms The Safety Of Banking Data and Payments
Financial transactions do come up with their own set of risks. Customers need to know who possesses the assets like stocks and commodities that they’re investing in. The financial market has complex and wide networks that are based on a slow paper-based method, which might be inaccurate.
Blockchain technology develops a decentralised database of digital assets to streamline the process. With its help, one can send the rights to an asset using cryptographic tokens. The cryptocurrency providers like Bitcoin and Ethereum have accomplished this by using digital assets.
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Reduces Human Error
Many reports have shown that human errors in record-keeping, accounting, and reconciliation have led to fraud. When it comes to security operations, simple negligence or human error can result in major cybersecurity issues.
Blockchain consists of an automatic process of keeping track of transactions. And the data in it cannot be altered later. With the help of this process, most of the manual procedures can be stopped. As a consequence, it will reduce errors, improve efficiency and mitigate the impact of cyber threats.
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Eases The Trade Finance Process
Trade finance extends credit, eliminates fraud risk, and ensures exporters and importers can take part in international transactions. Trade finance is an essential part, but still it counts on outdated and traditional methods.
With the help of blockchain technology, the process of trade finance can be made much more flawless and smooth. And it can save billions of dollars for exporters, importers, and financiers. Plus, they will provide better transparency to the shipments and assurance of delivery.
Summing It Up
Although blockchain technology is making a slow move toward the banking sector, it is the best call for the improvement of financial services. On top of this, it will have a positive influence on international transactions and will keep digital assets secure.
At present, retail banks are opening their doors to many aspiring candidates. Take up the PGCRB course by IPB and make your way to the retail banking sector.
