Blockchain Technology- a Silver Lining to BFSI Industry

The rise of blockchain technology in 2008 revolutionised different industrial sectors. Blockchain is a game-changer for all the industrial sectors, and companies cannot afford to ignore it. It is considered to be the ground-breaking innovation of the internet era. A major breakthrough in information storage and transmission, blockchain is likely to transform the existing operating models of the BFSI industry.

The technology experts Dr Garrick Hileman & Michel Rauchs in 2017 surveyed 132 use cases of blockchain technology and grouped them into different industry segments. The below pie chart depicts the percentage share of blockchain technology in various industries. BFSI industry has the most extensive set of use cases with a share of 30%. 

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The blockchain technology has found its way into the banking sector. A survey report from 2018 says 69% of Indian banks are experimenting blockchain. 

Let’s have a look at how blockchain is making a dent in the BFSI sector.  

1. Reduced Fraud

A cybercrime data says 45% of the banking and finance sectors suffer from financial crime annually. Blockchain being a new technology, it’s potential to reduce frauds is commendable. It has gained popularity across financial intermediaries like stock exchange and money transfer services. Currently, the BFSI industry has implemented centralized databases that are vulnerable to cyber-attacks as a single point of failure. A secure system to avoid such attacks is crucial for the BFSI industry, enabling safe transactions. 

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