The surging use of cryptocurrencies is expected to enhance the development of blockchain in the banking and financial services market, according to The Business Research Company.
The report noted that the worldwide blockchain in banking and financial services market size is anticipated to hit $1.89 billion this year from $1.17 billion recorded in 2021.
As a result, recording a compound annual growth rate (CAGR) of 61.9%. The report added:
“The blockchain in banking and financial services market is expected to reach $12.39 billion in 2026 at a CAGR of 60%.”
Reinsurance companies have been adopting blockchain technology for more accurate, faster, and more efficient compliance checks and claim settlements.
For instance, Ryskex, an insurance company, deploys a blockchain-powered platform to streamline insurance analysis and minimize risks. The report stated:
“Blockchain technology allows for safe data management across different interfaces and stakeholders while maintaining data integrity. The system reduces operational expenses across the board, from identity management and underwriting to claims processing, fraud management, and reliable data availability.”
With SAP SE being the biggest company in the blockchain in the financial market, it is continuously adopting cutting-edge technologies to streamline processes.
For instance, it revealed plans to incorporate blockchain technology into its supply chain traceability platform to enhance stakeholders.
Nevertheless, the report highlighted that blockchain scalability is the major stumbling block toward market growth.
Meanwhile, the benefits rendered by blockchain technology, such as transparency, transaction security, and detection of fraudulent activities, are expected to be major catalysts enhancing the fintech industry, Blockchain.News reported.
Image source: Shutterstock
