Retail Banking on Blockchain

India’s retail loan assets are forecasted to grow to $3 trillion by 2026. As digitisation accelerates, the battle to acquire customers for banks is expected to tighten up with peer-to-peer lenders and FinTech startups. In 2019-20, the total transaction value in the digital payment segment was more than $69 billion and grew 24% year on year. The retail banking sector is exploring Blockchain technology as a viable option to harness this capability. Transparency, Governance, and Accountability are the most sought features that Blockchain provides by design, and according to reports by 2022, This to save banks $20 billion per year in infrastructure costs.

Blockchain has brought a dramatic change to the banking channels in the last few years and is considered a potential new revolution for the retail banking space. In due course of time, the Banking industry accounts for 30 % of total blockchain spending by 2023. Nowadays, the retail banking sector is characterised by multiple products on deposits, credit, insurance, investments and securities; numerous channels of distribution via branch or internet; and multiple customer groups including consumer, small business, and corporate. In India, retail lenders traditionally relied on in-person interactions during the lifecycle of the loan process, right from sourcing to disbursal. But with the passage of time and advent of technology, retail banks have been more focused upon the following