Noted blockchain pioneer and HashCash CEO Raj Chowdhury put forward his viewpoint on the immediate requirement for multiple upgrades within standard banking systems in order to compete with rapidly growing fintech services. The potential requirements present a strong case for the incorporation of blockchain across the existing system.
The fintech sector is swiftly progressing with the adoption of new-age technologies and subsequently revolutionizing conventional financial services. The service providers are diverging a notable portion of their resources towards front-end development, improving UI/UX, fostering digitalization, and adhering to competitive pricing practices. The banking system on the other hand must adapt to modern technologies like blockchain for optimization and adjusting to the digital age.
Chowdhury stated, “The traditional universal banking model offering all-in-one services has seen an alternative with separate fintech businesses offering specialized services. From wealth management, payment services, to loans- the focused specialization of fintech increases customer expectations leading to competition with the BFSI sector.”
Blockchain is popularly known as the underlying technology behind cryptocurrencies. Institutions all over the world are seeking ways to incorporate blockchain into their existing structure for several reasons.
The banking sector is adopting this technology for instant international transaction settlement, better resource management by avoiding intermediaries, reduced chances of error and counterparty risks, and an overall increase in transparency and financial accountability. Smart contract solutions powered by blockchain also culminate in superior contract performance.
“Originally designed as a platform for an alternative to existing fiat currency system, blockchain is now built to answer the challenges in the existing banking infrastructure, and help them deliver better services”, mentioned Chowdhury.
Led by Chowdhury, HashCash Consultants remains at the forefront of the blockchain revolution receiving top awards for blockchain development worldwide. The US-based company develops products and solutions that have met critical acclaim in more than 26 nations across 5 continents. Banking solutions from the HashCash stable include products for digital identification, ACH Clearing, and more.
Traditional banking systems need to evolve and adopt blockchain to keep up with the rapid fintech progress offering Banking as a Service features using API connectivity to offer embedded financial services.