Blockchain Technology in the Banking Sector

At the moment, Blockchain technology is significantly changing many areas of our everyday life such as banking, insurance, government and many others. The Blockchain applies to almost every area when we need verification of users and actions. This technology was significantly popularized by bitcoin (the first application of blockchain which became popular in a very short period). Blockchain gives many opportunities to speed up processes, reduce costs and make operations more transparent. Using it, we can change fields in which there have been used established business processes for almost a century such as banking sphere. This study aims at clarifying the understanding of the applicability of Blockchain technology in the banking system on the example of remittance process to better understand the limits of applicability of these innovations. In the first chapter, we study theoretical part of the blockchain. We discuss different consensus mechanisms, different platforms, and the most significant benefits. In the second chapter, current trends are written. In this chapter, we take some real banking blockchain examples, and then we conclude the most perspective banking business processes to implement blockchain technology. To conclude the second chapter, main limitations and criteria of necessity are written. In the final chapter, current interbank payment’s process will be sub-divided to see where this new technology can be useful and what are the main confines of this integration. Extra attention will be paid to advantages and disadvantages of using Blockchain to improve current banking business processes. The result of this study are conclusions about current blockchain limitations and main real attractive points of this technology to banking sector based on the actual blockchain project.