How Blockchain is Changing the Face of Financial Services


Mar 9, 2023 ·


How Blockchain is Changing the Face of Financial Services

Blockchain has always been able to transform various industries ever since its inception. With features, such as immutability, transparency, and decentralization, it has changed the face of financial services. Blockchain technology is a distributed, decentralized and public ledger that records transactions across multiple computers in a network.

Due to the design and properties, blockchain is secure and transparent which is almost impossible to modify. This technology helps in the smooth transfer of currency and adds security and reliability to financial transactions.

Want to know how blockchain is changing financial services? Check the points below:


A ledger exists with several copies across the network. Everyone in the network gets a copy every time a new transaction occurs and a block gets added. Not a single entity controls the ledger. However, the system is built to deliver the same information to everyone.


A blockchain delivers a precise and chronological record of transactions. As every person in the network has a copy, it's almost impossible to edit or delete transactions or to add unverified information. A coordinated attack on hundreds and even thousands of computers simultaneously, which is impossible, is required for modifying transactions.

Money Transfers

Transferring money to other countries exposes financial institutions and consumers to several risks and challenges. People transfer billions of dollars globally every year, which is quite an expensive, error-prone, and strenuous process. Blockchain can upgrade the process by eradicating these complications. Many leading banks have implemented blockchain technology-based global payments that save time and money.

Consumers can use blockchain money transfers to finish electronic transfers with mobile devices. The transfer avoids the laborious process to visit a money transfer facility, stand in a queue and pay transaction fees.

Direct and Inexpensive Payments

Many funds pass via financial institutions, such as credit card processing centers and banks. Every step adds a layer of complexity and fees that makes it costly.

Decreased Fees

Merchants pay processing fees that cause financial losses when customers pay via a credit card. Blockchain payments eliminate or decrease fees by streamlining the money transfer process.

Eradicated Insufficient Funds

Sometimes, consumers pay for products and services with a poor check, which causes financial loss, extra fees for merchants, and the chance of a legal hassle recovery. Blockchain-activated payments assure merchants that transactions are good in a few seconds/minutes.

Fewer Online Scams

Online scams are a big concern for several individuals. However, blockchain-oriented payments are reversible and quick. They are quite cheaper than using banking services, mainly for expensive items.

Less Time and Money

Cash, cashiers' cheques, and wire transfers are the safest payment methods. However, cash is untraceable, cashiers' cheques can get forged and wire transfers waste a lot of time. Blockchain-based payments help in eradicating such issues and boosting confidence.

Transaction Tracking

Money transfers are not the only way in which blockchain transforms banking. It is an excellent solution to track transactions and deliver secure and accurate information, such as title details and smart contracts. As a distributed ledger is almost impossible to alter, it helps in easily tracking ownership. Transferring ownership and liens can refer to the led her to check the information, and thus it's more trustworthy.

Financial transactions can get quite complicated, costly, and time-consuming. However, blockchain creates an opportunity to automate transactions. Smart contracts can help in tracking when buyers pay and sellers deliver. The contracts also help in fixing any issues that arose during your transaction process. Automated systems function 25/7 and can eliminate human errors.

Financial Inclusion

Blockchain’s low price gives it a chance to startups for competing with leading banks and encouraging financial inclusion. An increasing number of people are looking for an alternative to banks due to restrictions, such as minimum balance requirements, less access, and banking fees.

Blockchain acts as an alternative, which uses digital identification and mobile devices. It gives users relief from all hassles of traditional banking.

Minimum Fraud

Blockchain technology stores data and information in a ledger with transaction details in every block, with a unique hash referring to the previous block. Every person in the network also gets a copy of the transactions.

With these features, blockchain technology gets resistant to distributed denial-of-service attacks, cyber attackers, and other types of fraud. The cost of running a business gets reduced without the cyber attack risks, which helps all the involved parties save money and effort.


Digital currencies are the trending assets that depend on the blockchain. They are already in use, and blockchain companies are eradicating the barrier of entry. Blockchain provides a seamless exchange of the most famous cryptocurrencies as a banking alternative.

The Bottom Line

Blockchain is changing the face of financial services in the ways above. As banking involves many strict rules and regulations, an increasing number of financial institutions are realizing the power of blockchain technology and cryptocurrencies. The leading financial institutions will perform tests to discover the latest utility cases and opportunities. The future will see many blockchain-oriented solutions for conducting transparent, reliable, and accessible financial transactions.