A Complete Guide To Video Conferencing Technology For Your Business

With an ongoing pandemic, working remotely has become an absolute necessity. Even with the lockdown restrictions lowered, many businesses are embracing the Work-From-Home (WHM) motto. For the first time in history, commuting to work is no longer a mandatory deal. Instead, virtual teams are getting set up to communicate and work together. With an ongoing pandemic, working remotely has become an absolute necessity. Even with the lockdown restrictions lowered, many businesses are embracing the Work-From-Home (WHM) motto. For the first time in history, commuting to work is no longer a mandatory deal. Instead, virtual teams are getting set up to communicate and work together.

These virtual teams often take up the form of a video conference. A video conference solves issues such as accessibility, location and time zones or costs that essentially come with a traditional setup. Understandably, more and more companies are adopting the technology for their businesses. Noting that, this blog covers what the whole ordeal is about and how to implement the system for yourself:

 

Table Of Content:

  • Types of Video Conferences.
  • Benefits of using Video Conference Technology.
  • Top Features in a Video Conference System.

 

Types of Video Conferences :

Generally, the term video conferencing describes virtual meetings between two or more parties. Yet, there are several variations in it. Conferencing programs can be of different types, each offering unique value to the end-user and administration. Some of those platforms are as follows:

Desktop Applications: These applications are native software that runs directly on individual workplace desktops or personal computers. They often get used by internal members of an organization. Usually, the best desktop conferencing application gets considered to be the one that supports all major Operating Systems.

Browser-based applications: Instead of requiring a download of a separate desktop application, Browser-based applications run directly from the installed web browser. The applications are often supported using the open WebRTC standard, which ensures ‘usefulness, consistency and compatibility across browsers. Organizers can invite the attendees using a URL link, thus allowing all of the collaboration to happen through a web browser.

Mobile Applications: Almost everyone owns a smartphone in today’s time. Anyone with a wifi signal or enough cellular data can join in on a video conference through their mobile phones. They can do so by either downloading a proprietary conference application or leveraging the power of WebRTC from the phone’s browser.

Meeting Rooms: If some employees are still present physically in the workplace, the meeting room system becomes an adequate system to implement. Large or small groups can successfully host video conferences, given that these spaces are enabled with WiFi or are hardwired. Some of the hardware that you might need for such a room is as follows:

  • Video Meeting Display.
  • Video Conference Unit.
  • Conference Phone.

 

Benefits of using Video Conferences Technology:

Video conferencing has become a crucial part of 21st-century business. It helps conduct complete visual interaction with clients, colleagues and employees altogether. There’s quite a bit to lose when not implementing a conference setup in your work environment. Hence, below are some of the benefits a video conference system can bring to your business:

Cost Savings: The cost of travelling to-and-fro work adds up quicker than we realize. With a proper video conference setup for your workplace, you can eliminate several costly factors. Some of them being: employee transportation, hotels, meals, customer entertainment etc. It all disappears. This money can get put towards other urgent business priorities.

Improved Productivity: Reduced travel requirements do not just save cost, but time too. With a video conference setup, one can virtually be at two places at the same time. Video calls also help reduce any miscommunications that can occur through email or phone calls, as the participants are now more likely to communicate efficiently.

Improved employee efficiency: Adding to the previous point, video conferences are also likely to increase the efficiency at which employees communicate. With video calls come effective visual cues, thus adding to the interaction what audio calls cannot. They could also interact with the clients using display mockups and demo products, making the communication process more interactive.

Management Simplification: By implementing a structured and consolidated meeting solution, teams will be free to focus on the meeting itself instead of being burdened with troubleshooting. Not relying on too many solutions makes the management system quite simpler and straightforward. Video conferences also offer the employees the kind of flexibility that helps boost attendance rates and aids in maintaining a record for it.

 

Top Features of a Video Conference System:

A rising number of businesses are shifting their communication system from audio to video conferencing. So much so that it has become a norm to implement conferencing units anywhere that they can. With that kind of usage comes a demand for several features. Below are some of the features that work best with a video conferencing system:

NoiseBlock: This keeps any unwanted noises at bay. It keeps noises such as keyboard typing, paper shuffling, background talking and other kinds of noises away from the communication. NoiseBlock uses its technology to detect when a person is actually talking. When no one is talking, it temporarily mutes the microphone until it detects a person again.

Auto/Group Framing: This feature eliminates the need for any manual camera framing. It reduces the need for a moderator to zoom in, out or make any adjustments for a perfect view. This feature is always dynamic in nature. It automatically detects the need to conduct a re-framing process according to the number of people present in a frame.

Content Distribution: Document sharing features occasionally get built inside of a text chat function itself. Some conferencing software offers it directly from the video call itself, without the need to get to a chatbox. A proper content distribution system that works during a video call helps the participants plan, strategize, brainstorm and make their decisions faster.

Session Recording: This feature helps make records of a conference session by recording its video or audio feed. These recordings can be reviewed at a later time by the management. Some conference solutions even let you host the recorded sessions on their own platforms to be accessed remotely.

 

Conclusion:

Video Conference systems come with a lot of benefits, and implementing them in your workplace becomes a boon for it. With the pandemic, the use of such systems is only going to grow, and companies will have to accommodate their work accordingly. Using video conferences, a solid customer-employee-management relationship can be established, an opportunity that shouldn’t be missed.

Difference Between Woocommerce And Shopify

E-commerce portals are highly popular sites among users who are planning to purchase goods and services over the internet. E-Commerce sites are majorly used for different types such as Business-to-business, Mobile Commerce, Customer-to-business, business-to-consumer, and the list goddess goes on. There are mainly two popular eCommerce development channels. One is Shopify and the other is WooCommerce.

Talking about WooCommerce, it is an open-source, customizable eCommerce plugin built on WordPress. It has a powerful Content Management System (CMS) that is used to operate an online store. The open-source nature of this plugin allows customization in all aspects of the store.

Similarly, Shopify is also a leading eCommerce platform that enables businesses of all sizes to establish their store online and sell their products & services. This all-in-one platform can also handle inventory, payments along with other technical aspects of the website like security, web hosting, caching, etc.

Both the platforms serve their purpose significantly, however, the decision to choose one depends upon your skills and need. Some of the major differences between Shopify and WooCommerce are elaborated below.

 

1. DEVELOPMENT TIME

This aspect emphasizes how quickly the online store is built.

WooCommerce:
If you are not in a rush to instantly attain massive sales, you may incline towards WooCommerce. It allows you to bring out your creativity, unlike Shopify. Although the process is time-consuming, you can make this website completely yours with creative controls.

Shopify:
This is a better option if you are not having any technical skills and are beginning from scratch. Shopify lets you build your online smoothly and quickly. It has a less manual process, unlike WooCommerce. There are in-built themes, you can choose from and even edit them.

 

2. SALES FEATURES

Both the platforms have advanced sales features to run a small business online. Some features are included as standard in each platform, but a few are add-ons.

WooCommerce:

  • It does not include the ‘Abandoned cart recovery’ option.
  • It has integration with multi-channels for selling like eBay, Facebook, Amazon, and Instagram. Here, only Facebook is free to install, the rest will cost you $79.
  • It offers a seamless shipping experience, even to sell internationally.

Shopify:

  • It has an ‘Abandoned cart recovery’ feature to gently remind customers with an email to complete their sales order by filling out the details again.
  • It gives free integration with multi-channels for further selling, unlike WooCommerce.
    Shopify works extraordinary to make shipping a success by collaborating with DHL Express, Canada Post, USPS, and UPS, which saves you time and effort for arranging your own courier.
  • Shopify offers extra built-in features like Unlimited products, Over 100 payment options, Discount Codes, Website & Blog, etc.

3. DESIGN & THEMES

For any website, its design & theme are most important to lure customers.

WooCommerce:
There are unlimited designs and themes to choose from in WooCommerce. Even you can click on ‘Themeforest’ to a giant gallery of around 48,308 website themes and templates. You must be technically competent enough to edit and customize the theme as per your needs.

Shopify:
Presently, there are around 72 template options provided by Shopify, and 10 out of them are free. There are specific variations in each theme. The biggest advantage is that all the templates are mobile-friendly already.

 

4. EASE OF USE

Since all the business owners are not developers or web designers. Thus, such platforms must ensure their user-friendliness to make them easier to use.

WooCommerce:
Since it is not a subscription-based and a hosted platform like Shopify, a few things need to be managed like installation of WooCommerce, Handling updates, Security of the store, and keeping backups. Establishing WooCommerce could be a complex procedure, as you require WordPress in the beginning. Further, get a domain name, register for a hosting account, install WordPress and its theme.

Shopify:
In Shopify, almost all things are intuitive as it is a built-in online store. At first, visit shopify.com, register yourself, and then go through the setup instructions then ready to sell. The ones with zero coding knowledge can also easily install Shopify and follow easy steps to build everything up.

 

5. ADD-ONS & INTEGRATIONS

Third-party tools like lead generation tools, outreach services, email marketing software, analytics tool, etc are required to grow the online store.

WooCommerce:
Since it is a plugin of WordPress, the user gets access to 55,000 free WordPress plugins and other paid ones. There are comparatively more add-ons and integrations offered by WooCommerce than Shopify. WooCommerce is a lot easier to personalize as per the needs.

Shopify:
It has a powerful app store, where you can purchase third-party add-ons for the Shopify store. They have apps for lead generation, discounts, SEO, product reviews, countdowns, etc. It comes along with both paid and free apps.

 

6. SEO

To get your site visible in the top search engine result pages, SEO is important. Both WooCommerce and Shopify are competitive enough to manage SEO undertakings.

WooCommerce:
It is developed using code that is optimized for SEO. Moreover, it gives access to WordPress’s massive range of plugins for excellent SEO services, unlike Shopify. Also, there are more helpful SEO prompts and guides to help in the longer run.

Shopify:
It also has a wide range of SEO plugins to offer from the app store. You can add basic SEO information in the titles and descriptions of pages, images, and products.

 

7. SECURITY

High-level security is a priority for eCommerce sites because you deal with payment processes as well as carry their confidential data.

WooCommerce:

  • Since it operates with WordPress, thus the actual plug-in does not accompany built-in security. Thus, any sort of security issue must be controlled by your hosting provider or yourself.
  • WooCommerce does not come with Secure Sockets Layer (SSL) Certificate. You can get it from your hosting provider, while the time of signing up for a hosting plan.
  • PCL-DSS that is the Payment Card Industry Data Security Standard helps your site to accept credit card payments with legal regulations. However, WooCommerce does not comply with PCL-DSS automatically, unlike Shopify. You need to follow certain steps to set up it.

Shopify:

  • Since it is a hosted eCommerce platform, it takes care of the security breaches on its own and prevents hacking.
  • There is a built-in SSL in Shopify, that helps you secure customer’s payment information, makes the site safer to browse, and also enhances the online store’s SEO as Google prefers SSL complied sites first
  • Again, Shopify is completely PCL-DSS complied, and you can run with debit and credit card payment processes from the beginning.

 

CONCLUSION

Overall, both the eCommerce platforms serve the needs of the client of any business size. Both have solutions available for any sort of problem. Also, Shopify is costlier than WooCommerce, however, it depends upon you what you are looking for. Go with Shopify, if you are not a technical expert, need 24/7 support for security, and sleek templates. Else, choose WooCommerce, if you want to reach tremendous regions with a large-scale online store if you are technically competent and have a passion for personalization.

How Did Healthcare Industry Transform In The UK In 2021?

Healthcare is one of the most evolving industries consisting of many trends and transformations depending upon the nature of ailments and diseases widespread throughout the year. This point holds major significance, especially during the time when the whole world is finding out ways to deal with the COVID – 19 Pandemic.

In fact, over 69% of the medical professionals have discussed the impact of Covid-19 in carefully considering IT for daily hospital routine and management. The onset of this virus has brought about a series of transformations in the healthcare industries worldwide. When talked about the United States, many trends can be observed in 2021 to bring about a positive change in the healthcare domain.

Advancements in technology have completely reshaped the healthcare sector. Some of the major changes are observed as follows:

 

1. USING ARTIFICIAL INTELLIGENCE AND TECH RIGHTEOUSLY

Technology and AI have proved to be of great value in the healthcare industry. The current technological trends help to diagnose and treat patients more accurately. Many medicines are personalized using AI and it has been a rich source in terms of medical trials and research.

Digital data inclusion is the most current technological trend in healthcare, so much so that this shall form a part as the topic of research with the main topic of AI for the DavosAgenda summit 2021.

 

2. TELEMEDICINE

The onset of the COVID -19 pandemic has promoted distant means to perform functions away from the crowd, so much so, that it has highly improved the use of TeleHealth Resources. These devices are worn by healthcare professionals to have real-time info. About their patients resting at their homes.

TeleHealth Resources include services like virtual appointments, maintenance of Electronic Health Records ( EHR ), and Interactive Voice Response ( IVR ) to establish fluent communication between doctors and patients. The apps providing such services are called Tele Medicine Apps and it consists of cloud-based server solutions to perform its functions. UK telemedicine apps like MediSprout V2MD patient companion app, Synzi Virtual Care App, YoY, Tropical Healthcare, etc., have seen a dramatic spike during the pandemic.

 

3. PREDICTIVE ANALYTICS REGARDING HEALTHCARE

The Big Data analytics regarding healthcare are aggregated and observed to lay down predictions in terms of health care. The growth in Digitalization and Digital Transformation in 2021 have accelerated technical capabilities to follow precision in the field of Medicine and develop the ability to forecast the future of current health systems.

In this way, the predictive analytics held digitally, help to acknowledge current healthcare provisions and even aid in formulating better systems in the coming future.

 

4. ROLE OF VIRTUAL REALITY ( VR )

Virtual Reality ( VR ) is a vastly expanding field even in the healthcare industry. It deals with customizable treatment procedures to suit the patients. The possible procedures are better understood using 3D scanning and skills practising.

  • Vivid Vision: to examine eye condition optimally
  • Accuvein: to see and apprehend the veins on the surface of the skin
  • Mind Motion Pro: to aid in the improvement of patients recovering from a stroke
  • Medical Realities: an educational program to assist students, to know more about virtual reality and Doctors, to undertake surgeries in a better way.

 

5. ENSURING CYBERSECURITY

Prior to 2020, it was pretty easy for hackers to get their hands on the data of healthcare service providers due to minimal attention given to digital security provisions. Ransomware attacks were a common sight at that time which resulted in slowed down operations of hospitals and healthcare service providers and shutting down of IT systems across the UK.

But now, in 2021 situations have changed drastically. With most of the transactions taking place virtually, Cyber Security has been given topmost priority now to secure the data stored in the systems and maintain good cyber hygiene. Cloud-enabled digital tech has now made data storage easy and even safe.

 

6. BUDGETING HEALTH WITH TECHNOLOGY

UK government has allocated the funds with respect to varied fields in the Healthcare Industry. They had announced a £7 Billion in funding package to the NHS and adult social care to detect and diagnose the Covid–19 infections using a combination of computed tomography imaging, analyzing electron via microscopy, and performing whole-genome sequencing.

$2 billion is allocated for the reimbursement of the tribal healthcare systems in a proper manner and to replace the lost revenues.

 

7. SOFTWARE SOLUTIONS

Software solutions aimed at easing out the workload of doctors. Such software also helps in performing analytics that is, computing the progress of the patient since the beginning of the disease. The medical solutions are updated with the latest tech trends to help in creating a secure and strong portfolio of patients.

The digital analytics offered by software solutions is beneficial for not only conducting research but also for treating patients. As one can get more accurate results from the clinical trials.

Investing in healthcare digital analytics can be both cost-effective as well as providing quality care to the patients. The smart devices can give the doctors access to important signs of patients and thereby, remotely conduct the treatment for an individual patient also.

 

CONCLUSION

So, by analyzing the trends and transformations in the Healthcare Industry in the UK in 2021, it can be easily observed that the United Kingdom is putting constant efforts to uplift their healthcare facilities and to make each and every citizen capable of using this advancement for their benefit. Thus, the new tech transformation in the Medical sector simplifies the surgeries, raises the possibilities for the speedy recovery of the patient, improving the clinical setup for patients, and the list goes on.

How Doctor Appointment App Is Beneficial For Your Clinic?

Any medical service would seek ways to improve its service quality, productivity and reach. In today’s digital and mobile era, the best way to go about doing that is by creating a web and app platform for your service. The development of such a platform will help patients in need of an emergency appointment and even those who need some consultation.

Developing a medical application gives a strong signal to the patients that expect convenience and accessibility from your medical services. Before diving deeper into the benefits of creating such an application, let us acknowledge the difference between the traditional system and an appointment application:

 

Traditional VS App Appointment System:

Medical Practices that often undergo traditional appointment scheduling methods describe the system as cumbersome, time-consuming and fallible. Although paper-based documentation gave way to digital appointment bookings, continual management is still crucial with the traditional method. Not just that, a steady amount of phone calls also get needed to be fielded and made.

Hence, the option to book a doctor’s appointment online plays a crucial role in patient satisfaction and ease of management of medical services. Upon booking an online appointment, the patient understands that they’re getting the best of modern care. The flexible features that come with such an application include:

  • Booking Vaccines and Inoculations in hospitals.
  • Scheduling patient treatment, services, and appointments.

 

Benefits Of An Appointment Booking Application:

Cost-Cutting For The Business: Cost-cutting is one of the first things that comes to mind when considering ways an appointment app can help patients and medical organizations. The availability of a doctor booking app allows clinics and hospitals to manage consultations better this way, helping them save money when they have online scheduling software in place.

Time-Saving: Another consideration with the doctor appointment and reminder application is its time-saving factor. With such an application, the doctor does not have to get involved with the online appointment scheduling process, and the receptionists or any other staff do not need to work the phones. The system also synchronizes automatically with everyone’s calendar, sends reminders on upcoming visits, and sends a notification if a time slot gets cancelled.

All-Time Availability: A patient must call in during office hours only when using the traditional method. On the other hand, using an online scheduling system, patients can view the service’s availability and book their appointments accordingly, no matter whether the office is busy or closed.

Better Information Management: Online systems have made patient management more accessible and more efficient than ever. Some online appointment scheduling systems also include patient health records management as part of the package. Recording, reporting and analysis of such information help manage a patient’s case file effectively. A single point can be created in the clinic from which patient information can be saved, updated, and managed. That reduces documentation bulk and thus reduces the time in accessing physical files.

Easy Access To Specialists: A Doctor’s appointment booking system usually gets combined with the platform that lists doctors’ specific clinics and locations. It means that a patient can easily find a specialist using the app if they have a problem that requires a particular kind of expertise. Doctor profile listings help patients get in touch with the right doctor without any time-consuming phone calls.

Expanded Medical Practices: The prevalence of Doctor Appointment App Development also means that medical services have discovered ways to expand and thrive in different ways. Softwares of these sorts can help expand opportunities for doctors in getting more patients and experience, also. Thus, implementing such software can increase the service provider’s profits by improving work efficiency and further expanding the doctor’s experience.

More Accessible Healthcare Services: An Appointment booking application helps doctors and patients become comfortable in scenarios where they have to conduct video conferencing. If a patient cannot reach the clinic or the hospital, they will still consult with their doctor from home using the application. Such systems help make healthcare more accessible to patients.

Improved Patient Satisfaction And Care: Patients often feel more confident and safe about the care that they get when they’ve got modern technological solutions available. One of those solutions comes in the form of mobile applications. Using a doctor booking system helps healthcare providers decrease the cost of medical services while making them better and more convenient for patients.

Advanced Marketing: Patient information used for appointment scheduling often include email addresses and phone numbers. Drives that are promotional, such as healthcare packages, blood test packages, free checkups for specific subjects, can be circulated among patients using their provided contact information. That can help bring in more visits from existing and new patients alike.

Improved Brand Loyalty and Trust: A doctor’s office or a hospital is also a brand that needs to be mindful of its trustworthiness. The presence of a doctor appointment application makes way for patients to feel more secure when they seek out any medical care on a repeated basis. A properly developed application also helps make patients at ease with their choosing doctor/hospital.

 

Conclusion:

Mentioned above are some of the benefits that come with developing an appointment scheduling web or mobile application for your hospital/clinic. But it doesn’t end there. There are many more benefits to be discovered as one begins their development process. Creating such an application and system truly benefits both the patients and doctors simultaneously and is a pursuit that proves itself to be worth it.

How to optimize and improve social media content of your brand?

Social media is an integral part of any company’s growth in this digital era. When you optimize social media, you build, maximize, and create your social media plan. Perfecting your strategies will automatically help in connecting with your audience in a better way through social media platforms.

Not only social media aids in strengthening the brand. But also it will empower more visibility of the brand and attract more leads for the business. Thereby, SMO (Social Media Optimization) refers to a procedure of enhancing strategies for social media to get measurable results, qualified leads, and increased sales numbers.

Thus, the aim of SMO is not only brand visibility, but also getting your brand being referred to and recommended by others. Here are a few ways to improve and optimize your brand’s social media content.

 

1. WORKING ON SOCIAL MEDIA PROFILES

The task is not limited to only creating a social media profile, but also optimized in a way to drive more higher-value users to your website.

There are 3 main foundation areas to optimize a social media profile:

  • Display Picture: The profile photo must include your company’s logo to start building brand recognition.
  • Bio: Mention what your company does with the help of relevant keywords put into your bio. Moreover, a link can also be added to redirect the prospective clients to the company’s website.
  • Username: It must be uniform on all social media profiles to get easy recognition by prospects.

2. IMPROVE YOUR CONTENT

Social media is the perfect place to share your content with your target audience. The chances of success rise with quality content and optimizing your social media content.

Basically, there are two types of content published on social channels:

  • Curated content that is shared information from different sources around the web.
  • Original content is the content you make yourself publish on social channels.

Testing your headlines is one of the ways to optimize content for social media because headlines are the first thing to catch attention. In fact, it is worthy enough to keep multiple headlines for the same piece of content. This way you can reach the maximum audience on different channels. The same content will look fresh with a new headline.

Also, you can enhance customer engagement by commenting, sharing, interacting, and liking posts on social media profiles.

3. CONDUCT KEYWORD RESEARCH

Just like SEO, Keywords play an essential role in social media marketing. Proper research must be done to understand how your potential audience reaches you. Thereby, you must discover what keywords, topics, and hashtags are typed by users to know about your industry.

Hence, understanding the search behavior pattern of users on social media can ultimately help in framing an effective social media strategy to attract more customers to your page.

For screening out keywords, proper social media-specific keywords tools must be used. There are more chances of using keywords on social media than normal search engines by the people. Social media optimization companies can also be outsourced to get the right phrases for your campaign.

4. MAKING AN EFFECTIVE STRATEGY

Social media is a versatile platform that keeps on changing and updating time-to-time, as per the trends prevailing in the market. Therefore, even your strategy must be growing, changing, and evolving with it.

Clear goals and objectives must be defined before planning out a strategy. The goals for social media campaigns can be either driving leads, increasing brand exposure, or earning conversions. The company must know what they want to accomplish.

While deriving social media strategy, you must consider achieving measurable results, growing the business’s presence, decide which networks to be used, etc. Networks where you can easily find an interested audience that must only be targeted to get valuable results from the campaign. Goals must be measured and monitored to make sure of the success of the campaign.

5. POSTING SCHEDULE

While considering social media optimization techniques, the critical aspect of it must be taken care of, that is, publishing. Even the strategy must be developed for the timing and schedule of posting content.

Since the audience may not be online all the time to check your posted information, thus, the right time must be set to post content to encourage maximum engagement.

The publishing time depends on the demographics of your audience and the platform you are using. These factors help in deciding the frequency of your postings. Some require a consistent frequency of posts while other social channels require posting once or twice a day. Thus, optimizing your posting schedule and frequency will let you attain your target audience at the right time.

6. USING HASHTAGS

These are the latest and unique additions to social media. Hashtags are generally used to discover exciting and trending topics. Integrating hashtags in your social media campaigns is the need of the hour now.

With the use of hashtags, your post reaches out to a massive audience even if, they are not the followers of your page. This is the best way to earn new leads and expand your business.

Hashtags cannot be used vaguely or blindly, to capture the crowd without any genuine purpose. There must be a good strategy for using hashtags to generate traffic. Irrelevant hashtags must be avoided.

Considering the trending hashtags used by industry influencers is a great way of knowing how your audience uses or searches. Hashtags related to your brand or industry will help you become a part of the popular searches.

7. CAMPAIGN MONITORING

After making and implementing the social marketing strategy, monitoring the campaign is also equally important. For a better understanding of the campaign, tracking the metrics, an analytics tool is a must.

The frequency of retweets, comments, conversions, shares, and follows can be monitored through your website. These analytics helps in knowing how successful is the campaign, and what more needs to be done.

Overall, you can optimize the social media strategy accordingly and get better results.

CONCLUSION

To sum up, it can be stated that social media optimization is mandatory to get the best results from the campaigns. This will help in improving your brand awareness and attracting more new leads to the campaign.

Impact of Blockchain Technology in the Banking Sector

The introduction of Blockchain technology has shaken up many sectors. With this technology, netizens have finally realized their dream of a legitimate decentralized Internet. From communications to healthcare, many industries and fields have been positively affected by it. One such industry is the Banking and Finance sector. Of which the Blockchain Technology might have completely changed the face.

Since 2008, Blockchain technology has become the sort of disruptive technology that has brought changes in the ways the banking sector functions. This sector benefits the most from implementing this technology, as it aids in eradicating any chances of errors and fraudulent transactions. This blog dives deeper into what makes Blockchain so exceptional for this sector and explores its impact.

 

Current Banking VS Blockchain Banking

Most traditional but modern banking systems get built on a centralized database system. They have a single point of failure, and from there on, everything that the system touches becomes vulnerable. The more centralized a banking system, the more the chances of it getting breached over time become.

The growing popularity of Blockchain has increasingly made its impact clear. This technology can transform the following sectors: Smart Contracts, KYC (Know Your Customer), Payments, Fraud Reduction, And Customer Management. Below are some details on what exactly changes with the implementation of the Blockchain technology in the Banking Sector:

Blockchain’s Technical Impact

Following are the ways BlockChain Technology will technically impact the banking sector as this technology keeps developing:

Security: The Centralized nature of the current and traditional banking system leaves a lot of room for vulnerabilities and errors. It has all the data, including that of transaction history, stored in a central database. That takes away the accessibility and power from the customers and gives it all to people with possible malicious intent that are within or outside the bank. With a decentralized system, that problem ceases to exist. Implementing this technology in the banking system will take away the middle man’s involvement in the stored data.

Transparency: Blockchain technology helps simplify the financial process and creates a source of sharing data with every participant in its network. Specified and certain parties are free to access transactional data at any given moment. That is made possible through the distributed ledger that gets shared between them. Additionally, the system that records transactional data helps offer a high level of data transparency. It also aids in securing many privacy aspects while sharing only selected data between businesses.

Programmability: The processes that a Blockchain system indulges in is almost always automatic. It does so by allowing the processes to run through the execution of smart contracts. With these smart contracts, the tasks that get directed get carried out only if their terms and conditions apply. This kind of contract is different from a legal contract as it is a code that gets executed within a blockchain.

Low Costs: An International transaction in a traditional banking system gets charged by the bank additionally. This kind of transaction gets sent to the central bank and only then transferred to the local bank. On the other hand, With a Blockchain system, the transactions occur directly between the sender and the receiver, with no middle man handling the business.

Data Quality: The currently existing data storage systems in the banking sector have proved to have a high probability of having your data altered. That is due to the fact that the data gets controlled by the bank, and hence, the present information cannot be up-to-date and can get distorted for malicious use.
The networks within a Blockchain System get designed to accommodate a large number of transactions. They get designed to do so while supporting the interoperability of different chains within the Blockchain itself. That thus improves performance and data quality.

Blockchain’s Non-Technical Impact

Following are the ways BlockChain Technology will impact the banking sector as this technology keeps developing in a non-technical manner:

Fundraising: In conventional ways, businesses tend to seek funds from various external sources such as investors, venture capital or banks. This process proves itself to be tedious and time-consuming. Blockchain, on the other hand, works by creating funds through what is known as Initial Coin Offering (ICO) and Initial Exchange offering (IEF). That takes away any involvement of banks or financial institutions.

Asset Tokenization: The process of buying or selling other assets such as stocks, commodities, bonds and currencies is complex and requires the co-operation of sectors such as banks, brokers, clearinghouse and exchanges. That is because the process needs to be as precise and efficient as it can be. The process gets simplified by tokenizing those assets using Blockchain. It also helps that most of the assets get sold online.

Loans: Loans often get monopolized by the involved firms and banks. They control the interest rates and raise and lower them by sheer will. This process may eventually trap the borrowers. Blockchain technology prevents something like that from happening by allowing customers to borrow in Decentralized Finance (DeFi) Ecosystem. That, in turn, creates a more accessible financial system, as it aims for more financial applications using Blockchain.

A New Set Of Customers: This generation of customers rely heavily on digital technology to carry out their daily tasks, including financial ones. This generation of customers grows in a well-networked environment with a good amount of know-how about crowd-sourced funding and online transactions. Using Blockchain will bring in new millennial customers concerned with data security and it will be easy to integrate the technology with other sectors due to the generation’s familiarity with the digital space.

Conclusion

The Blockchain technology is nothing less of a revolutionary innnovation. With its ever-growing impact on the healthcare and data-mining sector, it is about time that it fundamentally changed the banking sector too.

References:

1) Current Vs Blockchain: https://coinrivet.com/banks-vs-blockchain-how-technology-is-changing-traditional-approaches/
2) Technical and Non-Technical Impact: https://www.techcryption.com/2019/12/15/how-blockchain-technology-will-impact-banking-industry/
3) A New Set Of Customers: https://thefintechtimes.com/impact-of-blockchain-technology-in-banking/