Fintech and cryptocurrencies - how will the financial industry change in the future? :- www.deekpay.com

Fintech combined with cryptocurrency is transforming the financial services and banking industry. With the advent of Web 3.0 and blockchain technology, fintech blockchain companies are looking for ways to leverage blockchain technology to provide a better user experience, higher security and efficiency. On an international scale, businesses accepting cryptocurrency payments is nothing new. A good example is Elon Musk, who not only accepts Bitcoin, but also supports payments via Dogcoin.

Have you heard of DeFi? Also known as Decentralised Finance, DeFi is a brand new blockchain-based fintech that is expected to revolutionise the financial industry. The current financial industry is highly centralised, with financial institutions and governments at the centre. However, with the advent of fintechs incorporating DeFi, this will change sooner or later. Let's understand how blockchain, especially decentralisation, can address the shortcomings of the current financial landscape.

How can blockchain solve the current challenges facing the financial industry?

The following are some of the major challenges currently facing the financial sector:

Centralised system: as mentioned earlier, the financial sector in India is currently centralised with the government and financial institutions at the centre. Since the core idea of blockchain business is decentralisation, its introduction in finance will address this deficiency at its root. Slow process: the current financial system is still lagging behind. Although the technology is evolving rapidly, the process is often delayed. This leads to lower user and customer satisfaction. Trust: when it comes to money, trust is the most important factor. While fintechs are on the rise, they are still struggling to earn people's trust. People are becoming more and more concerned about finances and data. Therefore, empowering trust and transparency are at the core of fintech businesses, without which they cannot survive. High operational costs: fintechs are currently burdened with high operational costs. If you observe recent fintech service providers, they have invested heavily in customer acquisition and retention. This only increases the operational costs. If they open up their processes and reduce their reliance on multiple people, they can reduce their operational costs significantly.

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The above problems could be solved if the financial sector shifted from centralisation to decentralisation. Traditional brick-and-mortar banks are burdened by their existing customers and services, making such a shift difficult. All eyes are on fintech companies that can bring about a revolution by integrating decentralised finance with the current landscape.

However, before transitioning from your existing system to DeFi, you can focus on choosing the best financial system and gateway for your business.PayU is a leading payment gateway that offers more than 150 payment options and allows you to accept payments in international currencies. So, let your business flourish with happy customers using PayU!

Frequently Asked Questions

How can blockchain change the existing banking industry? Large financial institutions are considering the use of digital currencies as it offers tangible benefits in terms of transaction speed, transaction costs, etc. This could further address inefficiencies in the current payment system. Can blockchain be used to overcome inefficiencies in stock trading? Yes. Current stock market trades go through multiple stages, from brokers to exchanges, clearing and settlement. It usually takes a T+2 settlement day to complete a trade and the process can extend into the weekend. In addition, the parties involved must maintain their own databases, which are regularly reconciled with other parties to ensure accuracy. All of these inefficiencies can be eliminated through fintech and blockchain financial technology. What is cryptocurrency lending? Cryptocurrency lending is a process whereby a borrower borrows money by providing crypto assets as collateral at a predetermined interest rate. Such a borrower usually borrows stablecoins or fiat currencies. However, it can also work the other way round, where a borrower can offer stablecoins or fiat currencies as collateral to borrow crypto assets.