- Cloud Storage KYC Solutions Records Keeping
- Nov 10
- 2 mins read
How can financial institutions use RecordsKeeper Blockchain ?
Currently, banks transactions are made by creating agreements between banks, as one would do while purchasing an item from a store. A common example of this would be a bank agreeing to purchase a specific amount of stock for a particular cash price from another bank. This process is often cumbersome and slow which takes up to several days and also incurs the risk that one party may revoke the agreement. This period is known as a settlement period, and it is an issue that is costing the financial industry quite heavily.
RecordsKeeper has the potential to reduce, and possibly eliminate, settlement times due to its digital nature, ensuring the timely and secure processing of these operations. Other uses include increased transaction security, among other benefits, eventually allowing for an overhaul of the banking industry, replacing traditional back-office clearinghouses and other outdated mediums that exist between asset sellers and buyers.
Combining shared databases and cryptography, RecordsKeeper allows multiple parties to have simultaneous access to a constantly updated digital ledger that can’t be altered.
Here are few areas of the industry most likely to see an effect are:
- Clearing and Settlement : Securities play an important role than a complex use of Blockchain’s cryptocurrencies. They are a major factor in both mechanics and legal environment. The exciting key about Clearing and Settlement is that the central authorities govern the current industry structure. But the decentralized blockchains can or cannot work in a centralized operation. It can happen because the implementation runs as permission-ed by this central entity above the market convenience. The stock exchange companies and banks are now working with blockchain orientation so as to bring the global change of easy transfer and transaction. Blockchain experts and specialists maintain these chains to support and bring the digital awareness all over the world and to people depending on blockchain and as their right hand to get things done.Clearing and settlement are the interest at the moment, but blockchain solutions are not evident in this space in the first wave. It’s more likely to be noticed in the preceding waves. But it is up to us we to remember the crucial role these institutions play in financial markets.
How do Clearing and settlement work?
- Savings done through streamlined back office processes
- Verification of the identity of the certified transactions
- Keeps a record of transaction history
- Strangers trade directly with each other without any trusted third party person.
- Other useful help is automating buy, sell and supply transactions on a B2B and B2C basi
- Trade finance: Trade finance is all dependent on the bills, tax payment, registrations , letters of credit etc. Blockchain can offer the best solution for this, all the vendors can access the documents from the Blockchain which is verified and cannot be tampered.
- Identity: In banks individual identity need to be verified at every process such as for applying for a new account , loan or a credit card, if all the identification documents such as the aadhar card, pan card, residential proof all are uploaded on the Blockchain. The identification process will be fast and secure, Blockchain can play a major in the identification process of an individual.
Blockchain can really impact the banking industry and help in decreasing the scams which are occurring more frequently these days, such as the Nirav Modi scam in Punjab National Bank.
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