Abstract : Financial technology (FinTech) is currently paying a lot of attention to the concept of blockchain. It incorporates many computer technologies, including as point-to-point transmission, consensus procedures, and encryption methods, as well as distributed data storage. It has moreover been recognised as a transformative breakthrough of the Internet age. This paper examines how blockchain technology is being used in the banking industry for various purposes, such as payments and money transfers, digital identity verification, trade finance, fraud prevention, KYC and AML compliance, and smart contracts. Due to its high levels of security, transaction transparency, decentralisation, and efficiency, blockchain technology has the potential to totally disrupt the banking industry. This paper gives an outline of how blockchain technology might boost client confidence in the financial sector while increasing security, lowering costs, and enhancing efficiency. It also covers regulatory compliance, scalability, interoperability, and privacy issues as barriers to the adoption of blockchain technology in the banking industry. Based on a careful examination of academic literature, industry reports, and case studies, it provides insights into the potential benefits and risks of integrating blockchain technology in the banking industry. According to the research, blockchain technology has a great deal of potential to change the banking industry and has a number of options for growth and innovation. However, overcoming the technology's difficulties and limitations as well as assuring legal compliance and customer confidence are necessary for a successful adoption. Furthermore, the relationship between sustainability, Fin-Techs, and blockchain technology will be examined. The problems of adopting and utilising blockchain technology in the financial sector and services will also be highlighted, along with the anticipated future.
Keywords : Blockchain, Decentralization, KYC and AML compliance, Financial Technology
Cite : Singh, S., Manrai, R., & Gupta, P. (2023). Exploring the Applications of Blockchain Technology in the Banking System (1st ed., pp. 102-105). Noble Science Press. https://doi.org/10.52458/9789388996570.2023.eb.ch21
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