Nearly every international bank is trying to utilize blockchain technology in their efforts to reduce costs and increase operational efficiency. Financial institutions are exploring the technology in several ways, including through membership in global consortia, partnerships with fintech companies, and developing their own in-house solutions.
An extensive report by Business Insider Intelligence provides information about why and how banks are exploring blockchain technology and details on major banks’ blockchain efforts. Other notable blockchain-based global experiments are outlined as well, as are future trends in the sector.
Most banks are applying blockchain technology to reduce expenses and streamline processes. However, they are also looking to obtain additional advantages, including the ability to use the technology to build new business models and increased competitiveness with fintech companies.
Banks are starting to shift their focus, concentrating more and more on tangible use cases for blockchain technology that solve actual problems their businesses face.
Regulators’ interest in blockchain technology is growing as well. They are cooperating with major banks to develop regulatory frameworks.
Blockchain-based solutions will start to appear in different financial service areas. The best and most successful solutions will attract a big enough network to create widespread benefits and solve specific problems for financial institutions.
