PUBLISHER: The Business Research Company | PRODUCT CODE: 1733581
PUBLISHER: The Business Research Company | PRODUCT CODE: 1733581
Blockchain is a decentralized and distributed digital ledger technology that records and verifies transactions across multiple computers securely, transparently, and tamper resistantly. Blockchain in banking and financial services allows for the secure and efficient transfer of digital assets, reducing the need for intermediaries and enhancing trust through cryptographic validation. The primary purpose of blockchain in banking and financial services is to improve the security, transparency, efficiency, and cost-effectiveness of financial transactions.
The blockchain in banking and financial services market consists of sales, by entities (organizations, sole traders, or partnerships), of blockchain in banking and financial services in this sector enables banks, financial institutions and fintech companies to enhance their transaction processing, reduce fraud, improve compliance and increase operational efficiency. It is used by commercial banks, investment banks, insurance companies, payment service providers and other financial institutions. The technology is applied in various financial activities such as payments, lending, trading, compliance and asset management
The global blockchain in banking and financial services market was valued at $1,018.70 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 46.00%.
Increasing Cybersecurity Threats
During the historic period, the increasing cybersecurity threats supported the growth of the blockchain in banking and financial services market. Traditional banking relies on centralized databases, making them prime targets for hacking, fraud and data breaches. In contrast, blockchain operates as a decentralized, encrypted ledger, eliminating single points of failure. Since no single entity controls the system, cyberattacks become significantly more difficult, requiring alterations across multiple nodes-an almost impossible feat. For fraud prevention and identity protection, blockchain offers a secure, tamper-proof framework. Transactions are cryptographically recorded, time-stamped and immutable, preventing unauthorized alterations. This ensures financial data integrity and minimizes risks associated with fraud and identity theft. For instance, in April 2023, according to the Government of the United Kingdom, a UK-based information website, It is estimated that over the past 12 months, UK businesses experienced around 2.39 million cases of cybercrime and approximately 49,000 instances of fraud linked to cybercrime. Therefore, the increasing cybersecurity threats drove the growth of the blockchain in banking and financial services market.
Revolutionizing Financial Transactions With Crypto And Stablecoins
Companies in the blockchain in banking and financial services market are leveraging blockchain technology to enhance digital asset adoption, transaction efficiency, and security. A key trend is the development of blockchain-powered cryptocurrency exchanges and stablecoins. For instance, in May 2024, Bancolombia, a Colombia-based bank, launched Wenia, a blockchain-powered cryptocurrency exchange, alongside COPW, a stablecoin backed by the Colombian peso. Wenia aims to onboard 60,000 users within its first year, offering trading in Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), Polygon's MATIC, and COPW. Built on the Polygon blockchain, COPW provides a secure and stable digital asset, enabling seamless transactions. Positioned as an entry point for new users, COPW facilitates cryptocurrency adoption by ensuring price stability and ease of use. Such initiatives highlight the growing role of blockchain in transforming financial services through secure and efficient digital asset solutions.
The global blockchain in banking and financial services markets are highly concentrated, with large players operating in the market. The top 10 competitors in the market made up 52.46% of the total market in 2023.
Blockchain In Banking And Financial Services Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global blockchain in banking and financial services market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for blockchain in banking and financial services? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The blockchain in banking and financial services market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider blockchain in banking and financial services market; and compares it with other markets.