US state bankers associations to build industry-owned blockchain network

Local and community banks are teaming up to build their own private blockchain network. This move, backed by 39 state bankers associations, aims to help smaller institutions keep pace with tech giants and large national banks. While blockchain sounds technical, the goal for your business is simple: faster, safer, and cheaper transaction processing. By creating a shared ledger, these banks hope to eliminate the delays and high costs often associated with moving money between different financial institutions. For retailers and operators, this could eventually lead to quicker settlement times for consumer loans and lower transaction fees. Currently, when a customer uses financing, the 'plumbing' behind the scenes can be slow and expensive. This new network, called the Bank Social Network, is designed to modernize that infrastructure. It gives community banks a way to offer the same seamless digital experiences that big banks provide, without relying on third-party tech providers that take a cut of every deal. Keep an eye on this as it develops; it may lead to your local lender offering more competitive rates or instant funding features that were previously only available from fintech startups.

Source: Finextra — Lending

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