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How Blockchain can help more than 2 Billion people without access to Bank Accounts

Oct 23, 2017 Posted /  8848 Views

How Blockchain can help more than 2 Billion people without access to Bank Accounts

Results from  surveys conducted by Global Findex and IMF indicates that more than two billion people lack access to an active bank account. Studies show that people with a bank account live at a better standards of life compared to those without access to a bank accounts. This is because of the associated benefits of a bank account like increased savings, access to loans and access to mortgages. However, banks have failed to infiltrate to all the population who needs its services luckily Blockchain can provide a bridge between the banks and its customers.

How Blockchain could ease customer background Information Checks to comply with KYC/AML

It’s a norm within Banking institutions to acquire background data of all their customers so as to estimate to a good value the financial worth the customer. These data help the bank in making decisions such as whether to give loans to a customer or not. The database would also help the bank to comply with international Anti Money Laundering Laws (AML). However, a customer might have accounts in more than one bank with each bank having a requirement to collect the customer's background data. Blockchain can ease this process by providing a secured public database of all the customers in all the banks in a region. This database can be updated by a bank when a customer requires a service of that bank. This way the tedious process of acquiring customer background info is narrowed.

How Blockchain Allow for Easy domestic and International Monetary Transactions

With increased population coupled with improved economic condition among many countries demand for express monetary transfer services has risen. This is not only in the domestic perspective but in an international scale where migrant workers in developed countries want to remit money with instant confirmation from their relative in their home countries. The existing ecosystem powered by services like western Union, money gram and other payment services has not yet proved to be sufficient enough. Consider an aged peasant farmer living deep in an African village with no exposure to the bank but with a mobile phone. Blockchain can bridge the gap between the Bank which cannot infiltrate every region and mobile money subscribers which is the norm for more than 200 million people in Africa Alone.

How Blockchain can improve the insurance Efficacy and Increase the approval Ratings of Insurance firms

Lots of people worldwide believes that they are being cheated by their insurance firms and think are paying more than they should. This is true because insurance firms run a system which involves a lot of front desk agents hence increasing the operation costs of the firm. Blockchain can help automate lots of the processes involved in the insurance system thus reducing the cost met by the firm. This way the firms can give their clients fair insurance policies hence increasing affordability of the services and absorbing more clients.  A Blockchain insurance platform will allow transparent issuance of insurance policies coupled with the unimaginable abilities embedded within smart contracts Blockchain can forever revolutionized the insurance world.

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