The transformative potential of Web3 technology, particularly blockchain, in banking and financial services is immense, promising to revolutionize the way transactions are conducted, data is managed, and trust is established.

In banking and financial services, blockchain technology has the power to streamline processes, reduce costs, and mitigate risks. Smart contracts, enabled by blockchain, automate contract execution, ensuring transparency and efficiency while reducing the need for intermediaries. This can lead to faster settlement times and lower transaction fees.

During a panel discussion on transformative potential of Web3 technology, and blockchain in banking and financial services, at the Tech and Innovation Summit in Bangalore, organised by Entrepreneur Media, experts discuss about how the blockchain technology is solving problems and giving a new director to the banking and financial services.

Solves Critical Part of Problem

According to Vipul Saini, AVP, Start-up – HDFC, blockchain solves very critical part of the problem which is identification, reliance on information, and accessibility to newer ways of differentiating data that was not accessible.

“I have in the sector for four and a half year and one of the most exciting area for me is blockchain because private banks in India are very conservative in nature and they follow the guidelines very closely set by different government entities in that regards, the blockchain solves a very critical part of the problem which is identification, reliance on information, and accessibility to newer ways of differentiating data that was not accessible to bankers,” he said.

Major Scenario

Viswanadh Akella, CEO, SimplyFI SofTech India Private Limited said that trade finance and supply chain finance are coming into fore. “One of the major scenario now coming into fore is the trade finance on which we are working. We are working on international trade where importers and exporters would communicate and collaborate over this blockchain portal where it is ensuring data security. ”

Lack Of Awareness

Awareness of blockchain technology in India varied across different sectors and demographics. While there has been significant interest and adoption in certain industries like finance, supply chain management, and healthcare, overall awareness among the general population might still be limited. Highlighting the issue Divya K, Senior Manager (IT), CSOC – CISO Office (DR), Union Bank of India said there can be some resistance initially because of lack of awareness about blockchain technology and there are so many misconception and concerns which are needed to be addressed.

Speaking at the event she said, “RBI has still not allowed banks to do any kind of dealing in cryptocurrency and there should be some clarity from the regulator.”

She said that confidentiality, integrity, and availability are going to be satisfied by the blockchain as nobody can alter the data and it is anyway going to provide us confidentiality and that is where we get integrity.