Blockchain Breaks the Chain of Financial Middlemen in Global Finance

Multinational conglomerates largely control global financial systems. This was true back then, and it’s largely accurate today. But something exciting is afoot. The world is witnessing a transformation, a revolutionary change unfolding in real time. The battlefield of the 20^th century has shifted from a pantheon of billionaire investors, bankers, and financiers huddled together in their Ivory Towers to a digital arena known as the Blockchain.

The erstwhile financial systems, commonly known as legacy systems, were governed by centralized control. Today, a paradigm shift has occurred. Stakeholders are demanding fairness, transparency, and credibility.

Fortunately, Blockchain-based financial governance systems provide a decentralized alternative. This facilitates peer-to-peer transactions and enhances user control. For stakeholders, it’s groundbreaking stuff. Nothing has ever come close in terms of building trust in finance.

Previous systems relied heavily on intermediaries, a.k.a. middlemen. Everyone wanted a slice of the action. Unfortunately, this chain of command ensured a comfortable distance between decision-makers and borrowers, particularly in matters of financing, such as mortgages, refinancing options, vehicle loans, and business and personal loans. The widespread of interests, often shrouded in secrecy, eroded trust through a lack of transparency. 

Dramatic Technological Advances Reshape the Financial Playing Field

The dawning of a new age began with the fintech boom. It changed the face of global finance for everyone. Banks and financial institutions lost their monopoly over the entire industry. Small-scale fintech operations began competing with big banks, often outperforming them in terms of costs, communication, convenience, and comfort for industry stakeholders.

People quickly grew tired of exorbitant fees, commissions, delays, and bureaucracy associated with traditional financial institutions.

Digital Innovation in the Mortgage Industry

Financial technology companies began offering their services to a broad cross-section of society. Low-, medium-, and high-income individuals have adopted fintech and blockchain-based financial technologies in droves. From college grads to vets, everyone is cashing in on digital innovation in the mortgage industry.

Nowadays, it’s even possible to apply for a VA loan online, without going through a traditional bank for approval. Granted, eligibility must be verified before approving home loans.

Digital innovation has completely transformed the mortgage industry. It’s one of the most critical components of the economy, since it is valued at trillions of dollars. Nowadays, veterans have much more efficient access to their earned benefits. The financial sector recognizes that society owes these veterans a debt of gratitude. This is presented as competitive VA loans that often outperform the mortgage rates offered by traditional banks. Plus, VA loans do not require a down payment like many traditional mortgages.

Online platforms and fintech tools have streamlined the process. There is no mistaking the unprecedented events unfolding in the financial arena. Previously, the VA loan process was complicated. Now, all that manual paperwork has been replaced by automated applications.

This eliminates much of the stress, processing time, and complexity of obtaining VA loan approval. Other benefits include greater transparency, fairness, and convenience. When done right, an online VA home loan process can accelerate financing options for service members and their families.

Security, Privacy, and Trust on the Blockchain

One of the most glaring weaknesses of legacy financial systems is the ubiquity of data tampering and fraud. With blockchain architecture, there are fail-safe systems in place with immutable ledgers. These guard against tampering and fraud. Every single transaction on the blockchain is verified through consensus protocols.

This creates a clear level of accountability that simply doesn’t exist in traditional financial systems. It enables transparency, and it’s a digital evolution of trust. This shifts the power away from opaque institutions and toward individual verification protocols. In a sense, it’s a philosophical orientation taking place.

More importantly than the technological components, and there are many of them, is the human transformation this change entails. First-time homebuyers, veterans, and their families can now directly engage with financial institutions online. But it’s not from the perspective of the financial institution; it’s from the consumer’s perspective.

Many more options are catering to the individual than at any time in our history. Blockchain integration, coupled with automation and a consumer-first approach, heralds a new era in finance. Now, it’s all about inclusion and individual respect.