“The easiest way to solve a problem is to deny it exists.” - Isaac Asimov
The present could arguably be the best and worst time to enter the Banking, Financial Services & Insurance industry. Disruption is at an all-time high - advanced technologies are changing the market, consumer behavior is witnessing evolution, regulations and scrutiny are at a rise, new revenue and profit sources are entering the market.
As BFSI becomes more open, more routine, more plugged-in, players in this market can’t get away with vulnerabilities anymore. Trust and reputation are paramount, and customers are driven by speed and security above everything else. In the wake of disruption - BFSI institutions must address the following challenges or be driven into the ground.
Financial assets make up the footprint of who we are and where we stand in the economy. To entrust that to an institution is to give someone the keys to our lives. No doubt, this single factor can drive a customer towards or away from your business as a BFSI institution. Major countries across the world (Australia, U.S, China) are swiftly making the transition to blockchain to ensure evolved security in Banking & Finance.
According to the World Bank Group’s 2018 #ID4D Global Dataset, an estimated one billion people around the globe face challenges in proving who they are. They struggle to access basic services – including access to finance and even a mobile phone – and may miss out on important economic opportunities, such as formal employment or owning a registered business. Through emerging technologies like blockchain and AI, we could not only solve this crisis but also connect a formerly untapped market into mainstream BFSI.
Our personal data is often exposed to a large number of people in BFSI. Identity documents, personal information, records of our financial assets, we share this data with financial institutions. But we also share this data with the people associated with said institutions, often people we don’t know and usually wouldn’t otherwise trust. Across industries, locations and institutions, we have steadfastly embraced the principle of “sharing data on a need-to-know basis”. Blockchain solutions are the key to bringing the power of privacy back into the hands of your customers.
Customers respond to transparency. A blockchain ecosystem is sovereign, decentralized, and open. It eliminates the possibility of unsanctioned transactions and “off the books” dealings. As the famous saying goes - “what happens on the blockchain stays on the blockchain”. BFSI, enabled by this emerging technology, doesn’t only keep track of assets but also activity associated with those assets. This transparency makes it harder for malicious or corrupt elements to misuse the system and rewards authentic, responsible, and sustainable activity.