Banks and Blockchain have followed the opposite pole structure when it comes to management and administration. The advancement in technologies, new-age fintech solutions have attracted customers. Now more than ever, individuals have begun investing and saving their funds in other sources apart from banks. The integration of the N2 Ecosystem is beneficial for banks and their customers. The N2 Coin, N2C is at the forefront of all the financial services hosted on the N2 GloFi Platform.
In this article, let us cover the specifics of how these advantages would flesh out in real-time.
Instant Settlement Resolution
In any traditional banking system, international payments, transactions, and settlements often require multiple business days for completion. The authentication of transactions and settlement resolution between two different bank parties require paperwork, formalities, and legal issues that need to be approved before various banking bodies interact.
Bank customers can do transactions in blockchain ecosystems such as the N2 Ecosystem in minutes or seconds with the use of N2 Coin. With Blockchain, settlements become user-optimized, saving a significant amount of time and money for both parties involved. Blockchain will remove the need for much middle office and back-office staff at banks, as transactions settle instantly.
Capital Optimization
One of the main features of Blockchain is that it removes the need for a trusted intermediary and makes peer-to-peer transactions possible. Blockchain applications in the finance industries render intermediaries such as custodian banks obsolete. Thus, Blockchain allows safer capital optimization due to a notable reduction in operational costs.
N2 bestows banks with a shared Blockchain, allowing them to avail of decentralized financial services for their support. N2’s Banking Blockchain and the surrounding ecosystems charge significantly less than individual transaction management prices at a bank. Thus, all bank participants share costs for a significant reduction in expenses with The N2 Ecosystem’sEcosystem’s help.
Reduced Counterparty Risks
One of the significant challenges within traditional banking sectors is the failures regarding counterparties meeting their banking obligation within the stipulated time. These affect the customer’s finances as regulatory measures for not performing the banking obligations result in delayed service offerings.
N2 Platform resolves this issue as it enables the instant settling of transactions. The Banks linked with N2 platforms are integrated with blockchains to mitigate significant counterparty risks. Distributed ledgers track failures in performing obligations with records for compliance. The N2 Platform further facilitates prompt settlements with two-way payment mechanisms.
Smart Contract Performance Enhancement
Although net-banking is adopted, most banks still rely on old-school paperwork to process customer services. Loan approvals, account applications, credit tracking, and many other essential banking functions are still not advanced. The old-school approach to these banking services leads to inefficiencies and delays in the overall quality and delivery of services.
Banks and financial institutions can improve contractual terms & performance using N2 Ecosystem’sEcosystem’s smart contracts. Smart contracts perform automatic execution of processes when in compliance with predetermined conditions. Those smart contracts must be firmly rooted in law and comply with any regulatory submissions across jurisdictions if needed. High-value asset transactions can be settled in a hassle-free manner on the Blockchain due to smart contract governance and automated frameworks’ sophistication.
Crypto Data Security :
The centralized data storage of banks and other traditional banking institutions is prone to data breaches and hacks. Traditional banking groups store all their client’s information and data in a centralized data server. The singular source of all data puts banks in a vulnerable position to defend against multiple hacks and breaches sieged against a particular data bank.
Blockchain’sBlockchain’s data security is also due to its key feature of rendering any data recorded in its ledgers immutable. Data immutability is due to the elimination of a single data source. Distributed ledgers form blockchains, and thus any data entered is shared and recorded in every ledger there is. Therefore, any recorded data on a blockchain can be tracked in real-time, leaving a detailed audit trail. As such, it eliminates error handling and reconciliation.
Conclusion,
The N2 Group utilizes blockchain technology to enhance the N2Coin financial services experience by offering all the benefits mentioned above. Banks predominantly benefit from N2’s initiative as bank customers do not require to migrate to third-party fintech, thus enabling banks to retain their customer demographic. In contrast, customers engage in a platform that allows them to use traditional banking and crypto-based financial services. N2 ensures harmony with banks and their customers by presenting a win-win situation.
Promotional Description:
Banks and Blockchain are pole opposite finance structures. But what if we told you that here at N2 Group, we have found a platform where both can co-exist? Too good to be true? Find out for yourself in this blog.