How Blockchain is Shaping the Financial Services Industry

The financial services industry continues to evolve with our ever-changing world of technology. Most people have heard the term ‘blockchain’ before, but what does it mean? And how is it revolutionizing the financial services and banking industries? Here is a brief overview of blockchain and how it is shaping the finance industry.

What is blockchain?

In the simplest sense, blockchain is a chain of blocks. However, these blocks are not a traditional one; they are a block of digital information, aka a digital transaction. These “blocks” are stored in a public database, which is called the “chain.” So, in laymen’s terms, blockchain is a string of digital transactions and contain information such as time, dates, dollar amounts, etc.

How is this technology benefiting the financial industry?

Blockchain has been out for about ten years now; however, more recently, banks and credit unions have evolved and started using this technology as it provides a more secure transaction process. The DLT, or “distributed ledger technology,” is safer because of self-sovereign identity. This system doesn’t rely on any centralized authority as it is a portable form of identification. Thus, it makes it almost impossible for anyone to hack into and steal information. This added security is clearly beneficial to banking institutions and credit unions because it allows for safe and efficient transactions of customer data.

Blockchain can also reduce “Know Your Client” expenses. Rather than regularly having associates update clients’ information, blockchain can instantly update their information, which lowers costs and time for you and your client. 

Blockchain also offers “smart contracts.” These contracts are a code on top of a block that automatically executes with set terms and conditions. Smart contracts get rid of the middleman and can help you “exchange money, property, shares, or anything of value in a transparent, conflict-free way.” 

Need help building your IT team?

It’s no wonder that banks and credit unions are shifting their efforts to blockchain technology to reduce costs, save time, and make transactions more secure. If your institution is looking for talent to facilitate this technological transition for your organization, reach out to me. My team and I will work with you to find the best IT talent in the market. Reach out to me today, and let’s work together!

Banking Technology In The Wave Of The Pandemic

Banking Technology In The Wave Of The Pandemic

Did COVID-19 force the financial industry to warp into the future in just a matter of months? It may seem crazy, but the pandemic pushed banking technology into the future! And in the end, it will be extremely beneficial. Almost overnight, employers implemented hiring freezes, many office workers began working from home, and bank lobbies were closed or reduced to appointment only. The banking industry completely shifted its gears to keep the wheels turning. 

Sounds dramatic, right? Well, massive growth can come from the most uncomfortable of places. And I think we would all agree that the last six months have felt a little uneasy, to say the least. From the largest to the smallest, financial institutions across the country are being innovative and resourceful during these challenging times. The industry as a whole needs to take a moment and recognize these accomplishments and give themselves a huge (probably virtual) pat on the back. 

Banking Technology To The Rescue

How did we overcome such an obstacle and transition into an unprecedented win in a matter of months? Technology. In fact, the last decade of growth in the banking tech space created the perfect space for rapid innovation. Robust online banking systems allowed everything from virtual tellers, online helpdesk chats, mobile deposits, transfers, and more. Think of the position we would be in right now if we had to survive the last six months in the mid-’90s? The “natural growth” in terms of infrastructure, security, front and back end system integrations, and let’s not forget the dreaded merger. You know, the same “growth” everyone is always joking about? How everything is continually changing in banking? Well, all of that is what set the industry up for this success!

That same, inevitable (sometimes painful) constant change in infrastructure is precisely why giant steps forward could build out a more efficient business model when it counted. 2021 is now full of renewed energy and hope because of the pandemic’s massive jolt in momentum. The financial industry was forced to innovate and is now better poised than ever to take on the future. As a result, financial institutions are able to streamline their processes and offer better customer service. These banking technology innovations are helping financial institutions across the nation to future-proof their services and provide better experiences to all.

Need help building your banking team for the future?

If you are looking to have a breakout year in 2021, making strategic hires now will be key. Contact me at 630.206.5056 or Let’s have a conversation about goals for your team and how we make that a reality together!