The finance enterprise sector is slowly becoming familiar with the game-changing technology of Blockchain. The advent of this technology has changed the game from speculation to near certainty in a matter of months.
As benefits of the Blockchain revolution have become more obvious, the C-suite within organisations is beginning to take notice. In fact, financial leaders and experts are now betting on this technology and are in near-unanimous agreement that Blockchain is the mode of the future.
Great investment for financial firms
Nearly all big financial institutions are already taking steps to invest in Blockchain and the distributed ledger technology that enables it. As the technology allows peer-to-peer structure and facilitates real-time synchronisation and simultaneous editing, it is considered as great investment for banking and financial executives.
According to a Deloitte survey:
“Blockchain technology is emerging as a key business focus for US companies in many industries, with many executives in the consumer products and manufacturing and technology, media and telecommunications sectors planning their biggest investments to date in 2017.”
Key selling points
By collecting data in distributed ledgers and feeding that data into a single corporate ledger, data reconciliation suddenly becomes a constant and innate operational function which cuts out the middlemen.
Another appeal of Blockchain technology is its ability to help manage compliance through real-time reconciliation. When it comes to Blockchain’s selling points, financial institutions are lured by the idea that accountants will no longer need to manually input and reconcile data, since every little change to a financial database will be recorded and propagated in real-time.
Real-time compliance
Better data will yield better insight, empowering companies to maximize the value of their own data and focus on high-value activities rather than having to deal with constant time-and labor-intensive digital housekeeping.
Need more convincing?
Yet another benefit of the Blockchain is its ability to unify technologies to maximize their efficiency as it make processes much smoother through its unified technology landscape.
As many companies endeavor to demolish their data isolation and move towards cloud-driven technologies, most financial processes are time consuming, since legacy procedures tend to slow down the entire process. Such issues can be eased, if not entirely eliminated, with Blockchain technology. Its inherently decentralised structure peer-to-peer architecture makes it easier than ever to integrate financial data into cloud-based systems.
Such benefits tend to align with the processes that most CFOs usually have to deal with, so it’s not entirely surprising that many are shifting from their legacy processes and technologies to Blockchain technology.