Two of the key points that blockchain projects are privacy and safety for all data. For the fintech industry, this is a much-needed comfort. But in recent years many were seen flagging issues like vulnerability, transactional data leaks, privacy issues, and much more. So, what caused this?
Public keys of all networks are visible to all, leading to the exposure of security breaches related to smart contracts and Ethereum. Blockchain’s asymmetric cryptography can be used in many ways that can be considered illegal too. So, why is the fintech industry still prioritizing privacy and blockchain?
Fintech Is Prioritizing Privacy And Blockchain: Here’s Why
There are many reasons for fintech to prioritize privacy and blockchain. Here’s our take on it.
- Comply with regulations
- Protect customer data
- Protect from liability
- Gain new customers
- Retain customers
- For competition
- Future planning
Protect Customer Data
Fintech needs to prioritize privacy and blockchain to cover client data. Finance-based businesses are subject to strict regulations to cover client data. Fintech companies need to ensure that all client data is defended from unauthorized access, use, and exposure.
Protect from Liability
Even though blockchain can give security through transactions and methods, fintech businesses need to watch out for it. This procedure is to reduce the liability of the business. Protection of user data can cause less struggle down the lane in case of emergency. It can reduce or eliminate financial losses, loss in business, and reputational damage.
Gain New Customers
Any business needs the trust of customers, especially a financial business. Fintech companies are always under the threat of cyber-attacks. If they can convince the leads and prospects that they can protect the data with privacy and blockchain, they can gain their more trust.
Retaining existing customers is also important just like gaining new customers for fintech business. They can prioritize the data and financial safety when it comes to their own business. While it gains the customer’s trust it can also help the business to gain more popularity, trust, and newer customers.
The field of finance is extremely competitive. To stay ahead of the curve among competitors, fintech businesses need to be constantly on the edge. This can be in terms of technology, safety, data security, smooth process flow, superior privacy, services, products, and much more. Blockchain, as a technology, provides an edge to the fintech businesses in this context.