Banking Services and Blockchain: How Do They Work Together

Let’s start from where you already know: the banking industry is transforming from the way we know it today to digital operations. One of the players in this transition is Gen Zers. 

Digital services and faster access to bank accounts are the new norms. For example, most people prefer mobile banking for financial transactions, from account transfers to balance management. 

Although mobile banking is a huge improvement to traditional banking, it is still far from being perfect. It also has a long way to go to be considered fair. 

Challenges with Banking Services 

Let’s go straight to the point; traditional banking services are expensive and painfully slow. Now, technology has taken over the devices of yesteryears, with significant updates and new ones. 

Every day, month, and year, new, faster, and better innovations, such as smartphones and cars, are unveiled.  However, the banking sector appears to be lagging. Why? 

It is all about the charges!

Banks are profit-driven, meaning they take advantage of their clients. No matter the service you are seeking, they cash off you and not for you. If you have savings sitting in a traditional bank account, the amount you make as interest is pretty low, about 1%. However, banks make way more than you do with your cash. At times, up to 5 times what you make. Check some cases below: 

  • Average interest rates for mortgages = 2.98%
  • Credit card lending average interest rates = 16.15%
  • Student lending average interest rate = 4.5–7.3%

You will rarely hear of a bank offering less than 2% loans, and they do not consider it a problem. Why? The answer is that clients always accept it. They give very little for cash saved in the accounts but take a lot!

We Agree Banks are Bad, But What Does Blockchain has to Offer?

You have probably heard of the blockchain technology and cryptocurrencies that are rapidly changing the globe. The challenge is that it is complex, and banks would not want it to advance because it is taking up their space. They fear getting shoved aside in their industry. Take time to discover HI.com

New Technology Comes with Loads Of Benefits 

Blockchain has demonstrated it has a high potential to help people across the globe with millions of transactions per day. Instead of using traditional banking, blockchains allow people to send money around the world with lightning speed. The fee for the transactions is also very low, almost zero. It is time to say goodbye to processing fees, account fees, and waiting for days to transfer money. 

blockchain

Global Transfers on Blockchain

Blockchains make global financial transactions easy, fast, and cheap such that some might wonder whether it is even true. It is true. The best way to think of it is comparing blockchain to social media messaging where a person, say, in Hong Kong, can chat in real-time with another in the US or UK. Blockchain takes the speed you enjoy in social media to the finance sector. 

The computing power makes it possible to instantly process all the millions of transactions because all the middlemen have been removed. 

Blockchain is Less Complicated 

When using a blockchain platform, all transactions are recorded automatically on the system. Let’s demonstrate with a bank account. The most important thing in your bank account is the balance in real-time. 

If you add 200 USD to your account supported by a blockchain and send 50 USD to a friend, here is what happens. The blockchain will remove 50 USD from the account and credit it to your friend’s. The transaction is finished fast automatically by computers without requiring intermediaries.  

Conclusion:

The Future of Finance is Better for All with Tech 

The traditional banking system comes with loads of challenges and limitations. They also limit who can join based on geographical location, country, and bank. This is why millions are unable to get bank accounts, debit cards, or credit cards. However, everyone deserves equal opportunities, and blockchain is the best alternative. 

hi.com has a simple solution that can easily run on your smartphone operating as a not-for-profit model. Banking is crucial, banks are not necessary!

If you agree that banks have become way too expensive and their services terribly slow, it is time to try blockchain technology.