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In the past year, the blockchain has come a long way. With its near un hackability and the potential benefits it offers in the various sectors, it seems to be a no-brainer that the future will be a blockchain future. One of which is the banking sector.
Open banking is a new concept, which will benefit both, the financial institutions and customers alike. A major reason why customers do not adopt third-party financial services is trust and blockchain takes care of that. The immutable ledger of transactions that is the blockchain will be shared amongst all the stakeholders in the service.
The financial institutions can provide the blockchain platform as a marketplace for customers as a cloud-based platform. This will inject customers into a peer to peer relationship, just like that of the nodes in the blockchain. This will spawn a community of lenders and borrowers and financial service providers. As part of the standardized architecture, credit checks, regulatory requirements and any other verification requirements can be incorporated to ensure that there will be no foul play.
To ensure that customers conform to the regulations, the fintech can incorporate automated rating systems that are driven by machine learning and artificial intelligence on each of the customers in the peer-to-peer ecosystem. These can be governed by a set of parameters that will be used to rate the customers without any manual intervention to ensure fairness, transparency, and objectivity.