Since its inception, blockchain technology has had a revolutionary effect on several industries. Data suggests that global spending on blockchain will rise to $19 billion by 2024. This is up from 4.5 billion in 2020.
Remarkable, isn’t it?
One of the sectors greatly benefiting from blockchain technology is FinTech. This article series covers four key ways blockchain is revolutionizing the FinTech industry.
Reduces Intermediaries and Expedites Transactions
Blockchain also reduces the need for intermediaries for transactions to go through. Therefore, individuals and businesses can transact directly with each other. There is no need for any third party to verify, clear, or settle payments on their behalf.
Hence, businesses can operate independently of other companies in the finance industry.
In addition, blockchain technology enables financial transactions to be carried out in real-time. This is because it eliminates the need for verification by intermediaries. These may include banks, payment networks, and clearinghouses.
As a result, cross-border payments can take place at any time of day. Moreover, consumers do not have to wait several days before they clear.
For instance, Ripple, a FinTech company, uses blockchain as an enterprise-ready payments solution. Financial institutions now use Ripple to send cross-border payments. It’s convenient for them as a pre-funded intermediary isn’t necessary.
To enable real-time payments on their network, the company prices their cryptocurrency XRP low. This ensures that banks don’t have to wait days or even hours for an international payment to clear. Instead, a transaction can be sent, verified, and settled by the network within 3-5 seconds.
Without intermediaries, hundreds of financial institutions have adopted Ripple’s blockchain solution. Many of these institutions are also members of RippleNet. This is a global payments network that is powered by the company’s XRP cryptocurrency.
Matching Blockchain With the Right Talent
For FinTech companies, adopting blockchain technology can translate to growth acceleration. However, other elements will also play a crucial role in this. Key among them is the talent you bring in to actualize your vision.
Without the right people in your team, you won’t be able to capitalize on the tremendous potential blockchain technology offers. Martin Executive Recruiting is a recruitment agency that helps companies find top-notch talent. Get in touch with us today to find the FinTech talent that will help you scale.