In the banking industry, smart contracts can speed up transactions and simplify a variety of financial activities. It will aid in the accurate flow of information as well as the fulfillment of all parties' duties. Because all terms are evident to everyone, there is no space for error in a financial transaction, and the transaction remains transparent. Most major financial systems have already included Ethereum Blockchain projects to streamline cross-border payments, increase transparency, and organize online information administration. Ethereum smart contracts have several intelligent use cases in the banking and financial sectors. The concept of smart contracts is widely used in mortgages, payments, government bonds, insurance claims, etc. to simplify the process and make transactions fast and transparent. For example, when a bond is about to mature, it is created based on a smart contract and automatically transferred to the owner's account without the involvement of a third party. This makes the process transparent and effective.
Other examples of smart contract applications include financial purposes like trading, investing, lending, and borrowing. They can be used for applications in gaming, healthcare, and real estate; and they can even be used to configure entire corporate structures. A smart contract works in the same way as a traditional contract while also automatically enforcing the contract. Smart contracts are programs that execute exactly as they are set up (coded, programmed) by their creators. Just like a traditional contract is enforceable by law, smart contracts are enforceable by code.