In the case of banking, blockchain has several applications, some of which being:
Single unit of measure: Keeping cryptos as a mode of transactions will be worth several fiats at once.
Secure transactions: Since blockchain allows all participants of the network to keep track of transactions on the network, transactions between parties becomes more secure as once an entry is made, it cannot be reversed. Therefore, the problem of tampering with transactions is ruled out.
Cross-border transactions: Cross-border payments through the current banking system may take as much as 2 days to process, due to difference in currency and various other cross-border transaction rules in the respective countries of the parties concerned. Through the application of blockchain, cross-border transactions can be processed almost instantly because of the common currency and putting middlemen (banks) out of the equation.
Loan processing: In the current banking system, financial institutions are required to perform KYC every time while processing any form of credit. With the application of blockchain, a single client identification system can be designed to maintain a secure and accurate database of clients’ information which can be accessed by member banks for verification. Through this, clients have to be identified only on one occasion, thereby reducing the time taken to process loans.