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What is the previous scenario of without blockchain in financial services ?

What is the previous scenario of without blockchain in financial services ?

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Ans. Traditionally, the financial services industry is known for its legacy systems and some banks have stacks of legacy systems, some of which are 30–40 years old. It is, therefore, not surprising that the financial services industry has embraced Blockchain to improve many of their outdated systems and, along the way, save a lot of money.

1. Transactions can be done in minutes or seconds, while currently, settlements can take up a week. With Blockchain, settlements become user-optimised, which will save a significant amount of time and money, for both parties involved. Blockchain will remove the need for a lot of middle-office and back-office staff at banks, as transactions settle instantly.

2.One of the main features of blockchain is that it removes the need for a trusted intermediary and makes peer-to-peer transactions possible. When Blockchain is applied in the financial services industry, it could render useless the fee-charging intermediaries such as custodian banks or clearers.

3. When banks and financial institutions are using smart contracts, it will improve contractual term performance as smart contracts execute automatically once certain pre-set conditions have been met.

4. Increased options for financial solutions in times of crisis due to the availability of new financial products.

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