What are the Blockchain applications and prospects in banking?

There are many blockchain applications, especially in banking with its currency exchange. Some of the prospects and use cases are:

  1. Faster payments - Banking institutions can employ emerging technologies to promote speedier payments and cheaper processing fees by providing a decentralized channel (e.g. crypto) for payments. Banks might introduce a new level of service, launch new goods to the market, and eventually compete with innovative fintech firms by delivering stronger security and lower payment costs using blockchain technology. This can be done by removing third-party verifications and lesser transaction costs.
  2. Clearance and settlement systems - Blockchain, a distributed ledger technology, could allow banks to settle transactions directly and keep track of them better than conventional systems like SWIFT.
  3. Fundraising - Today, raising funds through venture capital is a difficult task. Initial Exchange Offerings (IEOs), Equity Token Offerings (ETOs), and Security Token Offerings (STOs) are some of the ways that blockchain businesses are speeding up the process (STOs).
  4. Credit and loans - Traditional banking organizations use a credit reporting system to underwrite loans. We’re looking at the future of peer-to-peer lending, as well as speedier and more secure loan processes in general, and even complex programmed loans that can resemble syndicated loan structures or mortgages, thanks to blockchain.
    These will give birth to many startup organizations as it is still in infancy and will develop into a very wide market.