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However, this particular blockchain has several features which financial services companies find compelling. It’s decentralized (doesn’t have a single point of failure), secure (utilizing cryptography to validate every transaction), immutable history (write-once, spend-only attribute of the ledger), efficient (exchange of information is fast and easy) and transparent (everything is documented).
To put it simply, multiple distributed ledgers are just a method of recording data digitally, and can be applied to anything that needs to be independently recorded and verified as having happened e.g. transactions, agreements, contracts, ownership, etc.
According to a SWIFT Institute Working Paper, it is the robustness and relative simplicity of the Bitcoin blockchain that has sparked the interest of similar technology to be applied to wholesale markets’ securities settlement as this can potentially reduce costs and risks.
And according to a White and Case report, a similar blockchain can also be used to improve and enhance currency exchange, supply chain management, trade execution and settlement, remittance, peer-to-peer transfers, micropayments, asset registration, correspondent banking and regulatory reporting (relating to “know your customer” and anti-money-laundering rules)."
Topic: [2016-09-16] How blockchain is transforming business models (Read 250 times)
The traditional business model is under attack… as well it should be.
In this era of disruption, it’s absolutely necessary to redefine business models and archetypes as a whole. This post dives into the benefits of blockchain, its impact on the financial system, and how some companies are experimenting.
Traditional financial services companies, and banks in particular, are behind the curve in terms of technology. An accenture report claims that most big banks have systems as old as the 1970s or even 1960s, which mean that newer IT systems are just patched on top of the core to deliver online and mobile banking capabilities. This means that most of the budget is used for maintenance rather than for innovation as their aging systems are creaking.
Taking the adoption of mobile and online banking as an example, most companies wait until a technology reaches a certain level of maturity before investing into it. The fact that these incumbents use antiquated tech propels the rise of fintech companies who utilize technology to make financial services more efficient and could potentially disrupt the financial services industry.
http://thenextweb.com/worldofbanking/2016/09/16/how-blockchain-is-transforming-business-models/
In this era of disruption, it’s absolutely necessary to redefine business models and archetypes as a whole. This post dives into the benefits of blockchain, its impact on the financial system, and how some companies are experimenting.
Traditional financial services companies, and banks in particular, are behind the curve in terms of technology. An accenture report claims that most big banks have systems as old as the 1970s or even 1960s, which mean that newer IT systems are just patched on top of the core to deliver online and mobile banking capabilities. This means that most of the budget is used for maintenance rather than for innovation as their aging systems are creaking.
Taking the adoption of mobile and online banking as an example, most companies wait until a technology reaches a certain level of maturity before investing into it. The fact that these incumbents use antiquated tech propels the rise of fintech companies who utilize technology to make financial services more efficient and could potentially disrupt the financial services industry.
http://thenextweb.com/worldofbanking/2016/09/16/how-blockchain-is-transforming-business-models/
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