Blockchain's introduction to the BFSI sector marked a paradigm shift, primarily attributed to its foundational role in cryptocurrency transactions. The technology has significantly influenced FinTech, sometimes even surpassing traditional financial mechanisms.
As of 2022, blockchain in BFSI held a market value of US$ 0.94 billion, with projections reaching US$ 13.79 billion by 2028, growing at a CAGR of 57.55% from 2023 to 2028. This surge is driven by factors such as increased automation, a rise in online banking services, and a growing need to counteract cyber threats.
The Andreesen Horowitz State of Crypto Report 2023 underscores the expansive growth within the blockchain and crypto industry, noting that over 50,000 developers are actively engaging with crypto-related repositories on GitHub monthly.
Over the past 14 years, blockchain technology has emerged from its initial association with cryptocurrencies to become a revolutionary force across various industries. Its core function as an advanced programmable database makes it applicable to diverse sectors, including BFSI (Banking, Financial Services, and Insurance), FinTech, Healthcare, Logistics, GovTech, Legal, Telecom, IoT, and Art, to name a few. ALLSTARSIT delves into the profound impact of blockchain within the BFSI sector, exploring market trends, applications, and the challenges faced in harnessing its full potential.
Blockchain technology in BFSI stands as a decentralized, digital ledger that records transactions across multiple computers. Its benefits include heightened efficiency, cost reduction, enhanced security, and increased transparency. Specific applications in BFSI include:
Over the past 14 years, blockchain technology has emerged from its initial association with cryptocurrencies to become a revolutionary force across various industries. Its core function as an advanced programmable database makes it applicable to diverse sectors, including BFSI (Banking, Financial Services, and Insurance), FinTech, Healthcare, Logistics, GovTech, Legal, Telecom, IoT, and Art, to name a few. ALLSTARSIT delves into the profound impact of blockchain within the BFSI sector, exploring market trends, applications, and the challenges faced in harnessing its full potential.
Blockchain's introduction to the BFSI sector marked a paradigm shift, primarily attributed to its foundational role in cryptocurrency transactions. The technology has significantly influenced FinTech, sometimes even surpassing traditional financial mechanisms.
As of 2022, blockchain in BFSI held a market value of US$ 0.94 billion, with projections reaching US$ 13.79 billion by 2028, growing at a CAGR of 57.55% from 2023 to 2028. This surge is driven by factors such as increased automation, a rise in online banking services, and a growing need to counteract cyber threats.
The Andreesen Horowitz State of Crypto Report 2023 underscores the expansive growth within the blockchain and crypto industry, noting that over 50,000 developers are actively engaging with crypto-related repositories on GitHub monthly.
Blockchain technology in BFSI stands as a decentralized, digital ledger that records transactions across multiple computers. Its benefits include heightened efficiency, cost reduction, enhanced security, and increased transparency. Specific applications in BFSI include:
The blockchain in the BFSI market is experiencing rapid growth due to digitization and increasing automation. Other contributing factors include a surge in online banking, propelled by smartphone usage and robust internet connectivity, and the need to combat internet-based financial frauds.
Governmental efforts to safeguard user data privacy, combined with the rising integration of cryptocurrency for secure transactions and smart contracts, further boosts market growth. The adoption of IoT, cloud computing, and AI in tandem with blockchain is enhancing data security, a critical aspect in the current digital age. Furthermore, the market is positively impacted by the increasing volume of cross-border transactions.
The global blockchain in the BFSI market is segmented based on type, application, end-user, and region. By type, it includes private, public, consortium, and hybrid blockchains, with public blockchains currently dominating. Applications range from digital currency, record keeping, and payments to smart contracts, with the latter holding the largest share. In terms of end-users, the market caters to banking, insurance, and NBFCs, with banking taking the lead. Geographically, North America holds the dominant position.
Notable participants in the Blockchain in Fintech market comprise:
Despite the burgeoning market, there's a noticeable deficit in skilled blockchain professionals. Over 90,000 job vacancies in the field remain unfulfilled, highlighting the necessity for IT specialists proficient in blockchain-specific technologies. Essential skills include programming languages like Solidity and Javascript, expertise in APIs and nodes, familiarity with Web3 & Web2 tools, understanding of oracles, and proficiency in cryptography.
Blockchain technology in the BFSI sector heralds a new era of efficiency, transparency, and security. However, the journey ahead demands overcoming certain challenges, primarily the skills gap. Companies like ALLSTARSIT are at the forefront of addressing this issue through specialized tech recruitment, thereby fostering continual innovation and growth in this dynamic sector.
Over the past 14 years, blockchain technology has emerged from its initial association with cryptocurrencies to become a revolutionary force across various industries. Its core function as an advanced programmable database makes it applicable to diverse sectors, including BFSI (Banking, Financial Services, and Insurance), FinTech, Healthcare, Logistics, GovTech, Legal, Telecom, IoT, and Art, to name a few. ALLSTARSIT delves into the profound impact of blockchain within the BFSI sector, exploring market trends, applications, and the challenges faced in harnessing its full potential.
