Blockchain is one of the most revolutionary technology paradigms in recent times, with the potential to redefine almost every industry. However, unlike other technologies, the success of a blockchain project is dependent on a connected ecosystem of transacting parties.
Experts argue that most Blockchain projects in the BFSI sector have not moved beyond the PoC stage. Per a study by Gartner, only 11% of CIOs have adopted blockchain technology.
According to Vaibhav Gawde, Head-Sales Consulting, Oracle India, building a cohesive ecosystem is often the challenge, because there are a number of stakeholders involved. “Blockchain technology helps improve the entire lifecycle of data management - collating, processing, analyzing and transferring it in a secure way. Unfortunately, there are very few CIOs who are aware and understand the full potential of the technology,” he adds.
Gawde believes that, if used aptly, there are a lot of advantages to this technology that can benefit banks and help them grow and cut costs, for example, processing efficiency improvements.
Banks can easily manage the hassle of the various accounts and services provided to them, like KYC, Smart contracts, clearing and settlement, trade finance, syndicated loans, trading platforms, and other payments, by using Blockchain technology.
“Take cross-border remittances for instance. Customers demand international money transfers that are fast, easy as well as secure. One of our customers-- Arab Jordan Investment bank—has successfully leveraged Blockchain technology to stay ahead of competition, along with enhancing customer satisfaction.”
However, Gawde remains optimistic.
“Though it could take a little more time than anticipated, I believe blockchain is here to stay. The technology helps companies improve transparency and trust. This is all the more apt for the BFSI sector, given the increasing number of fraud cases in the country, and it becomes quintessential for organizations to safeguard customer data and yet maintain transparency in a multi-layered ecosystem,” he sums up.