The advent of digital technology in financial services sector has revolutionized the industry. However, identity and trust still remains essential aspects of digital life which people are reluctant to discuss about. Nevertheless, for those who are charged with catapulting digital technologies to the industry forefront, trust and identity of customers are the two most crucial aspects that they would want to address.
The industry till date does not have even a single verification tool relating to digital customer identity and related transaction. Such technologies are indispensable for customers to deal effectively with financial services institution without relying on offline verification processes. With the news of Blockchain technology, the industry experts are touting the technology as a possible solution to resolve the trust problem.
Before Blockchain technology becomes a practical reality there are still some issues that the researchers need to address. Blockchain technology according to experts, will be of great use to the financial services.
Blockchain can be best explained as the technology behind bitcoin. It is the technology or public ledger solutions that has a huge storage capacity and a system dedicated to algorithmic resolution of problems. The technology is secured by cryptography.
Hence, the question arises what purpose will the technology serve essentially? The technology will be used by financial institutions to provide a record of transactions that is publicly verifiable. The blockchain system will help financial institutions to achieve the robust technology itself without having to outsource functions to a third-party organization, thereby fulfilling the trust needs of customers.
While many do not understand the actual intricacies of the technology, yet the general understanding of the benefits that the technology is expected to offer has generated widespread excitement.