Over the decade we have seen digital ledgers are becoming the fundamental change factors for the fintech industry and allowing it to acquire the lion’s share of the blockchain market. As a result, virtual currencies (bitcoin and Altcoins) underpinned by Blockchain technology are certainly contributing immensely towards accelerating the fintech revolution.
Though even today cryptocurrencies have not become the mainstream consumer acceptance yet their influence on the fintech industry has ensured their mass adoption and availability towards collaborative
How important is Blockchain technology for Fintech Industry?
According to Benjamin Xie, the lecturer at EU Business School the digital ledgers create a never-ending chain as long as people are actively using them. Thus, improves the efficiency of the record-keeping process with the least cost and time involvement.
Moreover, the immutable financial nature of blockchain provides excessive protection against fraud and gives more refined accountability for transactions. The Crypto market which is worth more than $1.8 trillion in 2021 is a lucrative prize for any hacker.
Yet ever since its establishment in 2008, the chain has never witnessed hacking owing to its decentralized structure. Alongside, it eliminates the risk of manual error which even multinational banks like Citigroup could not escape mistakes in their validation process.
Ideally, people like to store their money with a custodian, and with cryptocurrency exchanges like Coinbase, the task has become even simpler. Presently, Coinbase constitutes 43 million users with an approximate holding of $90 billion on the platform.
Are Fintech Companies using Blockchain?
The proficiency of blockchain principles and practices in fintech has brought the industry into the major limelight. As a result, with its effective use –cases several fintech companies across the world have created their mark in the industry.
accept Bitcoin payment from the customers and has emerged as the largest Bitcoin processing company focusing on Bitcoin payments.
How is Fintech impacted by Blockchain?
According to the PWC report on financial services and fintech, 77% of the financial service industries were planning to include blockchain technology in their ecosystem by 2020. Alongside, in the report released by Accenture and McLagan in 2018, 1/3th of the organizations which were investigated were found inclining towards incorporating blockchain in their platform. Moreover, 8 out of 10 largest global investment banks are already following the footsteps of blockchain.
The extensible potential of blockchain technology has certainly accelerated the Fintech revolution. Of all the startups, the Fintech sector received major financing which rose by 41% percent and grossed more than $40 billion in the year 2017. As a result, with the growing focus on investment-focused firms on blockchain-driven systems, it is estimated that the blockchain market growth shall reach $7 million by 2022.
Block chain’s boost to Fintech
With interesting and diversified applications of blockchain in fintech, it has changed the way banks and other financial institutions function today. The widespread integration of blockchain into the fintech space has resulted in
skyrocketing blockchain wallet holders which are about 80 million in 2021.
The influence of blockchain in democratizing finance and building wealth without any external control is already underway.