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July 11, 2018, 02:32:44 AM |
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With traxion, we can solve problems:
1/Financial inclusion:
According to the World Bank, in 2013, 10.7 percent of the global population lived on less than $1.90 a day. While these figures have been in decline over the last few years, that percentage still equates to around 750 million people. Financial inclusion is considered a key factor to poverty reduction. It refers to the access of people to a formal financial system. In the status quo, it’s the access to financial services such as banking that accounts for financial inclusion. Unfortunately, over 2 billion adults remain unbanked. In many of these developing regions, mobile money has taken the place of most financial services.
Blockchain’s disruption of the financial services sector supposedly changes this. Blockchain overcomes many of banking’s current limitations. Unlike banks, no physical branch presence is needed for blockchain to work. Since blockchain operates on a distributed network, there’s no need for a complex and expensive private infrastructure to run. This saves on the costs that banks and telecom companies pass on to users through fees and other charges when using bank accounts or performing mobile transactions
2/Speed:
According to proprietary McKinsey research and analysis (2015) on cross-border payments, the average time to complete a cross-border transaction is three to five business days, which includes the final mile transfer via a domestic payment network, such as Automated Clearing House.
3/Cost:
The fees accumulate along the process of transferring the money to the end receiver. Charges increase as the transfer go through the bank where the senders request to, then another additional charge going through the central bank, and another accumulation when going across the border to the recipient’s country’s central and local bank respectively, counting the foreign exchange fees in the process. The average usually plays below 10% on cross-border transactions if volumes are high and charges are not always transparent nor fixed.
4/Bureaucracy:
The existence of so many intermediaries, agents and brokers allow for the existence of bureaucracy in various workplaces. Current systems involve multiple agents to verify the data which makes the process complex. With the slow procedures and tedious work involved, many systems encourage this problem resulting to more problems like shortcuts and bribery which later on affects data integrity and accuracy of transactions.
5/Transparency:
The common woe when transactions are currently in transit is the process is not traceable. Senders and receivers are always left hopeful that the money will be delivered on time at very low costs. When the process of transfer from sender to receiver is not transparent, it leaves the people dumbfounded about the potential hazards that may happen along the way, which include server failures, longer rollouts and whatnot.
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