Most financial institutions have been in a long-term relationship with complex trading infrastructures. But it hasn’t always been smooth sailing - often resulting in drawn-out processes to settle trades, move assets, reconcile records and secure transactions.
So maybe it’s time for financial institutions to explore a potential with blockchain technology?
Blockchain technology could transform the financial services sector and the compliance teams that support it.
Immutability is perhaps its most attractive quality - blockchain transactions cannot be deleted or counterfeited as each block is secured using cryptography and validated by the chain participants, thereby preventing changes without participant approval.
For financial institutions and their compliance teams, blockchain can be a powerful digitized, ledger that offers numerous operational benefits, including:
Like any relationship, there’ll be ups and downs as the industry works through blockchain’s regulatory challenges and new frameworks. However, blockchain remains a promising prospect for the financial services sector.
The information in this article is general in nature. Any advice it contains is general advice only and has been prepared without taking into account the objectives, financial situation or needs of any particular person. The article content is not intended to be a substitute for professional advice and readers are urged to seek their own appropriate advice before making decisions. Any reference to a particular investment is not a recommendation to buy, sell or hold the investment.