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Benefits and use cases for blockchain in banking

This article comes from Consultancy.uk

Blockchain, while still relatively new to the financial space, is seeing interest from around 90% of banking sector executives, according to a new study on the potential of the technology in the industry. 40% of banks find themselves still at the exploration phase, while around 30% are pursuing proof of concepts. Intra-bank cross-border transactions are regarded as the most likely payment system to see blockchain implementation, followed by cross-border remittance and corporate payments.

Developments in the FinTech space – an industry which received $19 billion in venture capital last year – are touted to radically transform the face of financial services, from payment systems and clearing to financial settlements. One of the technologies which has received considerable hype in recent years is blockchain, a distributed ledger technology (DLT) that serves as the backbone of cryptocurrencies such as bitcoin. The technology remains in its formative stages; however, consultancy firms, such as Accenture, proclaim that the technology will come to revolutionize aspects of the financial services industry. 

In a new study from Accenture, titled ‘How Banks are Building a Real-Time Global Payment Network’, the consulting firm asked commercial banking professionals across the US, Canada and Europe, about the impact they believe blockchain will have on their operating models and operations.

Of the respondents, nine out of ten said that their institution is currently exploring the use of blockchain/distributed ledger technology in payments – largely because of the myriad compelling benefits blockchain offers. 40% of respondents note however, that, while interest is apparent within their organization, they are currently in a strategy forming or looking into the technology phase. “In other words, despite their enthusiasm for and interest in blockchain, many banks are still considering where to use it”, write the authors. 

30% of the organizations say that they are involved in proof of concepts (POCs) with other companies. Around 30% are more active, with 13% engaged in production implementation and 17% say that they are at the forefront of the developments in the field.

To read the full original article and learn more about implementation and internal resistance click here. For more blockchain technology related articles on DSC click here.

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