One BIG challenge TODAY in banking industry is the trust between banks. Let me take LIVE BILLION DOLLAR FRAUD from recent Nirav Modi case in India. This majorly happened because of inter bank blind trust without any data backing. Why banks trust other bank- they believe other bank in other country has solid procedure/process in place - t
This is completely based on plain ASSUMPTION.
Today an Indian bank in Hongkong (Axis bank which is a major bank in India and have branch in HKG) say AXIS Bank can trust PNB Bank (PNB an Indian Bank with no branch in HKG but other indian bank Axis has) is giving correct information only because AXIS feels that they should trust each other. There is no tangible backing of that trust. Once blockchain comes in, that trust will be backed up by clear tangible proof.”
“For example, Axis Bank in Hong Kong gave loans to Nirav Modi only because they trusted what was coming from PNB Mumbai, India”. “Had it been on blockchain, those clear entries would have been there that show whether the information is correct or not. That is one way such frauds can be prevented.”