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The queues in banks have lessened, the digital transformation is progressing, few people are for banks becomingredundant, and few believe banksshould rise and serve as the operating system. However, I vote banks to be centralized! And to some degree, Blockchain could help banks to achieve that.

Unlike the olden days when data/information was maintained in ledgers and files, now data can be digitaland stored on cloud servers. So, if the account information was fed in ABC city, why cant it be accessed from XYZ city?

Thanks to globalization that customer is not in one place now. He might have been born in a town and then moved to xnumber of cities for reasons from studies to job to marriage! And he cannot raise a transfer request each time.

Yes, the services are available online and could be managed. But in a critical situation like demonetization in India where people were asked only to visit their respective home branch, then it gets tough!

Or what about the situation when people need to change their mailing address, and this can only be done from their home branch.

Centralizing banks could help us in the following ways:

Blockchain could assist banks to achieve centralization using their permissioned network technology.

Experts believe that Blockchain has disruptive powers that could transform any process from a simple documentation to a complex cross-country settlement to be automated with just few clicks.

Adoption of Blockchain by banks would not only help people who use bank services but also individuals who are unbanked and looking to figure out what a bank is. Just imagine a person in rural India getting his biometrics done and submitting his eKYC, opening his new bank account and taking a loan for his farming! All this is achieved within a couple of minutes and is a possibility with Blockchain.

This article was written bySamiksha Seth, a research consultant.

Go here to see the original:
Banks Need to Be Centralized Could Blockchain be the Answer? - Finance Magnates (blog)