Blockchain Technology In The Indian Fintech Industry- How Will The Technology Venture The 2020s?

Did you know that the global market for blockchain technology will be worth $67.4 billion by 2026? The biggest market value distribution for blockchains is found in the banking industry. India is presently seeing the introduction of this technology.

India has developed into a significant global fintech industry hotspot and has given fintech start-ups considerable space. Covid-19 sped up the fintech sector’s expansion, which is now experiencing record investments and an explosive increase in the use of its services. It was essential for the financial industry to transition to app-based operations as sectors shifted to digital platforms.

The fintech industry has gone a long way with encrypted logins, full access to financial data, and practically all functions available at your fingertips. App-based processes do, however, need less time and effort, but it’s unlikely that they will result in secure transactions, protection against fraud, or transparency to prevent any wrongdoing. Here, blockchain technology has the potential to improve and even completely transform the entire tech-based financial industry.

Understanding Blockchain Technology

A blockchain is a decentralized, open, and distributed digital ledger that keeps track of transactions across numerous computers in such a way that any changes to the record would impact all following blocks and the network consensus. Increasing and leaving its mark in every industry, including fintech, real estate, agriculture, and healthcare, this mushrooming technology is expanding.

Boosting The Booming Fintech

It is clear that with blockchain technology, conventional financial processes may be completely transparent and based on fast, secure transactions. The new fintech transactions can create peer-to-peer networks, quick transactions, and total transparency without needing an intermediary.

Blockchain focuses on lowering the risk for financial institutions and offering secure, encrypted data that are safe and unmodified, potentially making the financial industry more transparent, less vulnerable to fraud, and less expensive for consumers. This enables the industry to concentrate on artificial intelligence- and machine-driven intelligence-based decision-making.

Financial Management Without Banks

Digital wallets, digital payments, and digital lending have all established new market segments due to the expanding new-age client sector. Blockchain technology can effectively govern this ecosystem. Blockchain-integrated digital wallets are protected by private keys while possessing their unique public address, allowing them to send and receive payments. With blockchain technology, wallet holders with private keys are the sole owners of the assets, unlike traditional currency, where banks take responsibility for holding money.

The Relevance Of Digital KYC

Trust and identification have always been difficult to establish in a financial transaction. Blockchain technology will be essential to automate the manual, paper-based, time-consuming, and expensive process of maintaining clients’ up-to-date records through digital KYC. igitization has enormous potential to keep data correct and foster genuine trust among parties conducting online business. Customer consent, data theft, and identity theft are essential parts that facilitate the task for all parties.

Borderless Payments With Blockchain Technology

Financial institutions can concentrate more on improving the speed and effectiveness of payment choices as the industry shifts toward borderless transactions. In addition, regulating the resources required to authorize payments and making them convenient for international payments further lowers the total cost of ownership.

Blockchain technology will revolutionize the fintech industry. Blockchain technology has excelled in the modernization of traditional financial institutions that fintech has risen to do. In addition, the data privacy advantage of blockchain has been building up the much-needed trust between users and providers in the fintech industry.

With an increasing focus on payments, closely followed by securities and trade finance, blockchain will focus on evolving complexity and delivery timeframe, improving financial institutions’ operational efficiency.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Mahesh Mohan

Mahesh is a Creative Writer intent on learning and sharing knowledge. He ensures to deliver well-researched and precise information to the reader without squandering their time or tag. He is well versed in financial technology and digital marketing with a passion for stories in all forms.

 

 

Banking On Digital Currencies And Blockchain Technology- How Will Cryptocurrencies Affect Fintechs

In 2020 the world cryptocurrency and blockchain market was estimated to be $1.49 billion. By 2030, it is expected to reach $4.94 billion, growing at a 12.8% CAGR from 2021 to 2030. Even with the current wavering scenarios, it is clear that they have an upward trajectory in the long run. Although cryptocurrencies haven’t achieved absolute consumer acceptance yet, there is little doubt that they will form an integral part of the financial ecosystem in the future.

Fintechs will likely be well impacted by multiple cryptocurrency availability and its adoption growth. Below we elaborate on how cryptocurrency, blockchain’s future, and the fintech industry are increasingly intertwined.

Decrypting Crypto

Cryptocurrencies are digital currencies not issued or regulated by any central authority, such as a federal or state government. Instead, they are generally stored in a more decentralized fashion. Some of these currencies, like Facebook’s Libra, are initially meant to be centralized, with long-term plans to be decentralized.

When a cryptocurrency is specifically decentralized (for example- Bitcoin), transactions are verified with the use of blockchain technology. Blockchain is a well-distributed, decentralized, accessible public ledger. In other words, it’s a public database of relevant digital information. Furthermore, the use of blockchain technology is a vitally secure mode of storing data as it is virtually near impossible to manipulate without significant detection.

Thus, cryptocurrencies are very secure virtual currencies with decentralized nature. As a result, they are not subject to government interference or regulation, as with traditional currencies.

Newer Fintech Industry Horizons With Cryptocurrencies

Cryptocurrencies are not well understood by the regular banking consumer residing in a country with a stabilized main currency. Therefore, unless the consumers are early adopters, they don’t have much incentive to primarily adopt crypto over the regular options and may even see the digital currencies as too risky.

However, cryptocurrencies are significantly more popular and have extensive adoption rates in regions of the world with multiple unstable currencies. A good example was when the bolivar experienced swift devaluation in Venezuela; many cryptocurrencies gained considerable access as a more stable and reliable option.

Cryptocurrencies are also specifically relevant to nearly 1 billion people across the globe. These people have mobile devices but may not have bank accounts. Being “unbanked,” they can’t use conventional financial products. But they can use those built on selected cryptocurrencies.

In both these cases, cryptocurrencies help open up newer markets where Fintechs find consumers who benefit from their products.

Better Money Transfers With Crypto

One of the fintech consumers’ biggest complaints with conventional financial companies is the excruciatingly sluggish pace of transaction approval caused by the many layers of bureaucracy such approvals usually entail. Anyone who has tried to transfer money from one bank to another across borders is undoubtedly acquainted with how tiresome the process can be. Even transferring money between institutions in the same country is often riddled with delays and inefficiencies.

Because they are created on secure and decentralized public ledgers, cryptocurrencies can be taken back and forth much more swiftly than traditional currencies. This has the extra effect of considerably reducing transaction costs.

Transparency, speed, and convenience -are the cornerstones of any Fintech innovation, and cryptocurrencies are part of what makes it possible to create solutions based on the same principles.

Cryptocurrency To Reduce Financial Fraud

Even as disruptors Fintechs face the exact issues around identity theft, fraud, and money laundering as any legacy financial company does, thwarting such hurdles is time-consuming, challenging, and labor intensive.

Because cryptocurrencies are created on distributed and decentralized ledgers, their specific transaction records are verified easily. Furthermore, provided the secure nature and use of blockchain technology, these particular records cannot be particularly manipulated or obscured, rendering fraud prevention a much less costly and tedious enterprise for Fintechs.

Fintech innovation has been an impactful disruptive force in the financial technology industry. Over the past decade, financial services and products have changed dramatically as Fintech solutions have offered consumers more appealing alternatives to traditional products.

Newer Paths In The Fintech Industry

In decades to come, cryptocurrencies will play a more significant role in forming emerging Fintech innovations by unlocking novel markets and supporting efficiency and convenience in all product offerings. However, it’s not just crypto that will transform the industry. Considering the rate at which innovation occurs in the fintech space, financial companies require the best products and services for their customers. It is vital to ensure that the customer is welcomed with a convenient yet secure onboarding experience. Check out Signzy’s AI-driven state-of-the-art customizable no-code resources to see what fits your needs.

About Signzy

Signzy is a market-leading platform that is redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering totally customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Mahesh Mohan

Mahesh is a Creative Writer intent on learning and sharing knowledge. He believes Finance is the matrix of functionality, and Technology is evolution. Amalgamate the two, and you get the most dynamic beast in modern civilization- Fintech. He explores this sphere with keen eyes on the terraforming ecosystem. He tries to balance his professional enthusiasm with his passion-driven love for history, mythology, and stories of all forms.