25 December 2023
The Global Market Size of Blockchain in Banking and Financial Services Expected to Reach $19.27 Billion by 2027
The global blockchain in banking and financial services market is experiencing rapid growth, with a projected market size of $19.27 billion by 2027. This transformative journey is driven by the increasing adoption of blockchain technology and the surging use of cryptocurrency in the financial sector. The advantages of blockchain in banking and financial services, such as enhanced transparency, reduced operational costs, and advanced financial solutions, are propelling the market forward. Major players in the industry, including Microsoft, IBM, and Amazon Web Services, are shaping the future of blockchain technology in the financial sector. Additionally, the reduction of fraud through blockchain is emerging as a pivotal trend, with companies leveraging blockchain to mitigate fraudulent transactions.
Types, End-users, and Applications of Blockchain in Banking and Financial Services
The global blockchain in banking and financial services market encompasses various types, end-users, and applications. The types of blockchain include public, private, and other types. End-users of blockchain technology in the financial sector include banking institutions, insurance companies, and non-banking financial companies (NBFCs). The applications of blockchain in banking and financial services range from fund transaction management to real-time loan funding and liquidity management.
Increasing Adoption of Blockchain and Cryptocurrency as a Driving Force
The growth of the blockchain in banking and financial services market is primarily driven by the increasing adoption of blockchain technology and the use of cryptocurrency. Blockchain technology offers numerous benefits, including capital optimization, operational cost reduction, and enhanced transparency for banks. The use of cryptocurrency, backed by blockchain technology, eliminates the need for central authorities to maintain transaction records. JPMorgan Chase’s cryptocurrency, JPM Coin, is a prime example of the rising prominence of blockchain in the financial sector.
Key Players Shaping the Future of Blockchain in Banking and Financial Services
Leading players in the blockchain in banking and financial services market, such as Microsoft Corporation, IBM, and Amazon Web Services, are driving innovation and contributing to market dynamics. These industry leaders are leveraging blockchain technology to develop advanced financial solutions and enhance the security of transactions. Their contributions are shaping the future of blockchain in the financial sector.
Innovation Trends: Fraud Reduction through Blockchain
One of the emerging trends in the blockchain in banking and financial services market is the reduction of fraud through blockchain technology. Companies are utilizing blockchain to mitigate fraudulent transactions by employing smart contracts and secure, step-by-step processes. Blockchain enhances the security of the supply chain process, preventing the misappropriation of company assets. IntellectEU’s collaboration with KPMG, resulting in the development of the ClaimShare solution, exemplifies this trend. The solution utilizes enterprise blockchain technology to ensure confidential computing and prevent unauthorized access to detailed claims information.
Conclusion:
The global blockchain in banking and financial services market is undergoing a transformative journey, driven by the increasing adoption of blockchain technology and the use of cryptocurrency. The market is expected to reach a significant size of $19.27 billion by 2027, with major players shaping the future of blockchain in the financial sector. The reduction of fraud through blockchain technology is an emerging trend, highlighting the potential of blockchain in enhancing security and transparency in the banking and financial services industry. As the market continues to evolve, opportunities for growth and innovation abound, particularly in regions such as Asia-Pacific. The future of blockchain in banking and financial services holds great promise, revolutionizing the way financial transactions are conducted and secured.
