Blockchain to revolutionize banking
Blockchain will have a significant impact on the financial industry. It will transform the banking and insurance business, but much work needs to be done to realize the benefits
Blockchain has the potential to revolutionize the financial sector by transforming business models, connecting new counterparties and generating sweeping efficiencies, but much work needs to be done before the full benefits of the underlying technology are realized.
Essentially blockchain has e.g. the potential to make trading processes more efficient, to improve regulatory control, to eliminate unnecessary intermediaries, to displace traditional trusted third-party functions or to reduce bank’s IT significantly.
Blockchain represents an opportunity for the sector to overhaul existing banking infrastructure. Understanding what the organization of the future looks like will be key to deciding how to interact with what is fast-becoming the IT and data story of the decade.
Blockchain will have a significant impact on the core of the financial industry. It will change established principles of governance and value creation. It is, however, not a phenomenon heralding the end of the banks and other financial market players through innovation driven by start-ups. While some start-ups are threatening established business models, there are also financial players defending their role.
Beside their efforts to achieve higher efficiency, financial organizations, including exchanges, clearing houses and central securities depositories, are also chasing new opportunities through experimental work with blockchain technology. Numerous banks already have actionable approaches.
Retrofitting established technologies with blockchain principles will not lead to significant benefits because of the disparate structure on which the technologies are based. Embracing digital technology in an actionable way leads to improved decision-making. To achieve this, there needs to be a breakthrough in thinking at the top of the organization.
At BearingPoint, we offer complete solutions on blockchain, from business strategy via process integration to technology implementation.