Blockchain boosting Fintech Revolution

November 15, 2021

Fintech revolt 1


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
future growth.

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?

Fintech Blockchain 2

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.

We. Trade, a platform developed by IBM in collaboration with 12 European banks aims to create a safe and simplified trading environment for entrepreneurs through blockchain inclusion (IBM blockchain platform and hyper ledger Fabric). Presently, it operates in 13 countries with more than 400 companies.
Circle, P2P payment technology is allowing users to store send, and receive traditional currency. With its availability in 29 countries, it also allows cryptocurrency investment. Similarly, Robin Hood and Veem are the additional fintech companies that have made it to the list of top fintech companies in the Forbes list of 2019.
Ripple and Stellar are the cryptocurrency platforms that allow virtual currency transfer throughout the world in microseconds. Alongside, Bitpay which is the Bitcoin payment service that allows business firms or personnel to
accept Bitcoin payment from the customers and has emerged as the largest Bitcoin processing company focusing on Bitcoin payments.
Inarguably, the adoption of Blockchain technology has fast-paced the entire financial, investing, and trading ecosystem across the globe and has emerged as the major strength for fintech companies.

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. 

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