'We need to reset:' Bank group aims to drive on-chain tech

Small and mid-sized banks are teaming up to modernize how they handle digital assets and loan processing. The BankChain Alliance now includes 37 state banking associations. This group represents nearly 4,000 local banks across the country. Their goal is to build a shared infrastructure for 'on-chain' technology, which includes blockchain and programmable money. For retailers and service providers, this is a signal that your local banking partners are trying to keep up with fintech competitors. If successful, this move could eventually speed up the way funds move from a lender to your business account. Currently, traditional bank funding for consumer loans can take days to settle. On-chain technology aims to make these transactions instant and more secure. It also paves the way for smarter contracts. This means financing terms could be automatically managed by code rather than manual back-office work. While the technology is still in the 'reset' phase, the heavy involvement of state banking associations suggests that traditional lenders are serious about not being left behind by buy-now-pay-later (BNPL) giants. Retailers should keep an eye on this as it may lead to new, cheaper, and faster financing products from the local banks they already trust.

Source: American Banker — Top News

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