Strategies for Banks to Boost SME Success and Profitability

​Blockchain technology offers small businesses tools to improve security, enhance supply chain visibility, and streamline payment cycles. By recording transactions in linked “blocks” that form a secure, tamper-proof chain, blockchain provides transparency and efficiency. These benefits have prompted businesses of all sizes to adopt blockchain to enhance operations and decision-making.

The blockchain’s transparent transaction records build trust between parties that may be unfamiliar with each other, removing the need for intermediaries. This reduces delays and simplifies business transactions, making processes faster and more efficient.

Unlike centralized systems, the blockchain shares data across an ecosystem involving various parties such as distributors and suppliers. By distributing control, blockchain fosters trust in transactions and ensures no single entity dominates the decision-making process.

The blockchain also supports peer-to-peer payments, eliminating fees from financial intermediaries. Businesses with international customers can use blockchain networks for direct, rapid money transfers, with automatic currency conversion. By automating tasks like reporting, auditing, and data collection, the blockchain reduces reliance on third-party vendors and associated costs.

Automation powered by the blockchain enhances efficiency and reduces human error. When combined with artificial intelligence, the blockchain can handle routine tasks such as customer support, inventory management, and invoicing. For small businesses with limited staff, automating these processes saves time and alleviates operational pressure.

Rebecca Gaskin Gain

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