Block chain
technology’s time has come. The year 2016 saw several financial companies
embracing this technology towards solutions for payments. Even settlements in
financial markets are being organized under blockchain methodology.
What is blockchain?
To the uninitiated
it is distributed ledger accounting system. Instead of the conventional central
source for balancing financial transaction (each transaction requires a buy or self;
or a debit and a credit – a transaction cannot exist singly – the analogy to
put it more simply is – two hands are needed for a clap).
Why are financial companies embracing blockchain technology?
Cross border payment
is the immediate beneficiary of this technology. It has proved fool-proof and
has increased trust among customers. Said a spokesperson of Payment Asia which is a leading payment
gateway in the world “Trust of customers is the most critical factor for a
financial company such as payment solutions provider – this trait cannot be
negotiated. Any financial development that creates better trust has the
advantage of being embraced quicker”.
Paymentasia along with other banks such as Santander in the United Kingdom
and Reisebank have started using blockchain transaction technology to send
money in real time. The troubles of Deutsche Bank are still not over. The
conservative non transparent style of functioning of this TBTF (too big to
fail) bank has led to the troubles.
The coming two years
is going to witness paradigm shifts in the way financial companies and bank
settlements happen. Payment Asia Reviews is a web resource where conversations in real time mirror the
happenings of the financial world. One paymentasia review has suggested that such interactions between institutions and
customers are the proper method to increase awareness through transparency.
Other financial organizations are heeding this thread as many more such forums
are springing up on the Internet. This trend highlights the advantages of
social media interactions.
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