How Blockchain Disrupts Acquiring, Remittance and Corporate Settlement
An ultimate financial game-changer: Blockchain technology has dramatically changed the traditional finance industry, and there is more to come.
A few years ago, blockchain technology gained significant traction and was regarded as a truly revolutionary tool for any industry, providing opportunities to significantly update the way of doing business in many areas. As a result, numerous illicit actors didn’t neglect to use the opportunity to capitalize on hype and use the situation for personal enrichment.
Only after an insane amount of marketing money was poured into this area and hundreds of scam projects had deceived millions of people, the potential of possible use cases started to reach solid venture capital funds and institutional investors. Realizing the true value of distributed ledger technology, the crypto community must concentrate on the industries where value can be added as quickly as possible to reshape the outdated financial landscape and disrupt acquiring, remittance and corporate settlement.
Overcoming the obstacle course for remittances
The extensive architecture of global payment systems is full of drawbacks. Cross-border operations involve the participation of one or more correspondent banks, and the timing of transfers can take up to five days. Now, think about it on a global level. Clients lose access to banking services more than 120 days per year due to weekends and various holidays, which rise in numbers when involving more countries. That makes a massive 30% chunk in capacity reduction.
So, will blockchain make a difference here? It surely will. Numerous apps are now providing onboarding. You can simply download a stablecoin wallet and enjoy instant access to checking accounts in U.S. dollars and euro, providing instant cross-border payments. Next, onboarding on the blockchain offers huge accessibility to the unbanked in markets where banking services have historically been monopolized and often absent. Blockchain-based solutions for customer onboarding are estimated to create $1 billion in saved operating costs for retail banks worldwide and reduce regulatory fines by $2 billion, as estimated by consultancy firm McKinsey & Co.
A few years ago, blockchain technology gained significant traction and was regarded as a truly revolutionary tool for any industry, providing opportunities to significantly update the way of doing business in many areas. As a result, numerous illicit actors didn’t neglect to use the opportunity to capitalize on hype and use the situation for personal enrichment.
Only after an insane amount of marketing money was poured into this area and hundreds of scam projects had deceived millions of people, the potential of possible use cases started to reach solid venture capital funds and institutional investors. Realizing the true value of distributed ledger technology, the crypto community must concentrate on the industries where value can be added as quickly as possible to reshape the outdated financial landscape and disrupt acquiring, remittance and corporate settlement.
Overcoming the obstacle course for remittances
The extensive architecture of global payment systems is full of drawbacks. Cross-border operations involve the participation of one or more correspondent banks, and the timing of transfers can take up to five days. Now, think about it on a global level. Clients lose access to banking services more than 120 days per year due to weekends and various holidays, which rise in numbers when involving more countries. That makes a massive 30% chunk in capacity reduction.
So, will blockchain make a difference here? It surely will. Numerous apps are now providing onboarding. You can simply download a stablecoin wallet and enjoy instant access to checking accounts in U.S. dollars and euro, providing instant cross-border payments. Next, onboarding on the blockchain offers huge accessibility to the unbanked in markets where banking services have historically been monopolized and often absent. Blockchain-based solutions for customer onboarding are estimated to create $1 billion in saved operating costs for retail banks worldwide and reduce regulatory fines by $2 billion, as estimated by consultancy firm McKinsey & Co.
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