Santander: Blockchain Tech Can Save Banks $20 Billion a Year

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legendary

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Bitcoin and the block chain go hand-in-hand. Or do they?

Yes, creating the world's first global currency is innovative, but the banking industry has many other priorities, like becoming more efficient internally. Enhancing the speed of transactions, improved security, and streamlining the auditing process are realistic uses of Bitcoin's block chain. Except the goal is to ape the technology without the need for bitcoin as a currency. The real goal is making a system designed to be decentralized into one of centralized control, without the incentive program it was designed to have, a neat banker trick if they can pull it off.

Source: https://www.cryptocoinsnews.com/bankers-begin-using-block-chain-technology-without-bitcoin/

Amadues

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Quote from: ChrisPop on June 16, 2015, 12:30:32 PM

Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022, a new report from Santander InnoVentures claims.

http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/

Do you realise how much money is that? With such savings,the bank could raise bank deposits interest rate or lower the loans interest. That refers only to some banks,the majority are the ones who just want to keep the profits for themselves.

Maybe in a long view the bank can create new services for the users, and give some opportunity for the final users, but obviously they will keep the major profit for they. In a short term view I think an interest of the Bank in the blockchain can help the growth of bit coin (as value, as people that use/know … etc…)

R2D221

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Quote from: BitmoreCoin on June 16, 2015, 03:24:17 PM

Quote from: oblivi on June 16, 2015, 12:34:27 PM

Everyone will be using the Bitcoin blockchain to run their banking infrastructures, because it doesn't make sense to use any other blockchain. Not using the Bitcoin blockchain = guaranteeing your shit will get hacked. For some reason they STILL keep the "blockchain tech" thing but tend to avoid the part where a cryptocurrency is basically the fuel that keeps the blockchain running.

If everyone uses bitcoin blockchain, your home computer will not be able to cope with the size.

Some mutuals (building society) can pass on the savings.

You shouldn't be storing the blockchain on your home computer anyway.

Amph

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Quote from: jonald_fyookball on June 16, 2015, 06:33:30 PM

Quote from: countryfree on June 16, 2015, 06:24:34 PM

$20 Billion a Year, really?
Anyway, I wouldn't like my bank to use the blockchain, for the excellent reason that it's public. The best banks are private institutions with all their books private, far from all eyes. A blockchain is definitely a smart way to keep a database, but each bank needs to build its one private blockchain if they think it's better than their actual solutions.

"private blockchain" Huh

That makes no sense. The whole point of the blockchain is that its distributed.

and public, not private, so they can't be friend ever, at best they can build something alike that could resemble a centralized blochchain with public transaction, for more transparency

SebastianJu

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The funny thing is, they have to accept bitcoin as well when they want to use the advantages of the blockchain. Only then its ensured that the blockchan is safe enough. And so far only the monetary bonuses coming from bitcoin mining can ensure an uncorrupted blockchain.

Somehow it makes me laugh. Cheesy

ticoti

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There are many people interested in the blockchain technology and I think we are in front of one of the most important inventions of this century,but we don't realise about it.
From 2020 on, we will appreciate it with the use of the biggest enterprises in it

jonald_fyookball

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Quote from: countryfree on June 16, 2015, 06:24:34 PM

$20 Billion a Year, really?
Anyway, I wouldn't like my bank to use the blockchain, for the excellent reason that it's public. The best banks are private institutions with all their books private, far from all eyes. A blockchain is definitely a smart way to keep a database, but each bank needs to build its one private blockchain if they think it's better than their actual solutions.

"private blockchain" Huh

That makes no sense. The whole point of the blockchain is that its distributed.

countryfree

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$20 Billion a Year, really?
Anyway, I wouldn't like my bank to use the blockchain, for the excellent reason that it's public. The best banks are private institutions with all their books private, far from all eyes. A blockchain is definitely a smart way to keep a database, but each bank needs to build its one private blockchain if they think it's better than their actual solutions.

jbrnt

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Banks CAN use blockchain tech to store their ledger, but they wouldn't. They will not be bold enough to ditch their databases and I think they would prefer keep their accounts data private. They can use the bitcoin blockchain to timestamp some transactions like interbank clearing and wire transfer. These wouldn't save much costs.

neurotypical

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Quote from: EternalWingsofGod on June 16, 2015, 05:01:52 PM

Quote from: ChrisPop on June 16, 2015, 12:30:32 PM

Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022, a new report from Santander InnoVentures claims.

http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/

Do you realise how much money is that? With such savings,the bank could raise bank deposits interest rate or lower the loans interest. That refers only to some banks,the majority are the ones who just want to keep the profits for themselves.

That is a lot of savings, the chances of it being passed to consumers is however very slim.
On the other hand it might allow smaller banks to remain competitive and scale up, such as credit unions.

Even if they find a way to make geat reductions of costs of running their banks, im sure they'll still keep charging the same ridiculous fees for the clients. Hopefully this pushes people into using Bitcoin instead of regular banking.

EternalWingsofGod

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Quote from: ChrisPop on June 16, 2015, 12:30:32 PM

Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022, a new report from Santander InnoVentures claims.

http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/

Do you realise how much money is that? With such savings,the bank could raise bank deposits interest rate or lower the loans interest. That refers only to some banks,the majority are the ones who just want to keep the profits for themselves.

That is a lot of savings, the chances of it being passed to consumers is however very slim.
On the other hand it might allow smaller banks to remain competitive and scale up, such as credit unions.

jonald_fyookball

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Core dev leaves me neg feedback #abuse #political

Quote from: Slark on June 16, 2015, 03:19:37 PM

Quote from: melody82 on June 16, 2015, 03:12:08 PM

Quote from: ChrisPop on June 16, 2015, 12:30:32 PM

Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022, a new report from Santander InnoVentures claims.

http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/

Do you realise how much money is that? With such savings,the bank could raise bank deposits interest rate or lower the loans interest. That refers only to some banks,there are some who just want to keep the profits for themselves.

You are kidding right? Can you seriously imagine banks passing those savings on to consumers? No they will pass the extra money right back into their own pockets just like they always do!

I think nobody is stupid enough to think that saved money with blockchain tech will help customers, people in need or anyone but banks. It will be a waste and it will only make financial elites even richer.
But I wonder how they will manage their own blockchain. Will they provide computing power themselves and it will be private blockchain?

Are you saying there isnt meaningful competition between banks? Competition usually forces savings to be passed onto consumers.

pereira4

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Quote from: BitmoreCoin on June 16, 2015, 03:24:17 PM

Quote from: oblivi on June 16, 2015, 12:34:27 PM

Everyone will be using the Bitcoin blockchain to run their banking infrastructures, because it doesn't make sense to use any other blockchain. Not using the Bitcoin blockchain = guaranteeing your shit will get hacked. For some reason they STILL keep the "blockchain tech" thing but tend to avoid the part where a cryptocurrency is basically the fuel that keeps the blockchain running.

If everyone uses bitcoin blockchain, your home computer will not be able to cope with the size.

Some mutuals (building society) can pass on the savings.

The point of sidechains is to avoid precisely that.
I see everyone talking about blockchains, but no one is saying exactly how they will do it without Bitcoin.

BitmoreCoin

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Quote from: oblivi on June 16, 2015, 12:34:27 PM

Everyone will be using the Bitcoin blockchain to run their banking infrastructures, because it doesn't make sense to use any other blockchain. Not using the Bitcoin blockchain = guaranteeing your shit will get hacked. For some reason they STILL keep the "blockchain tech" thing but tend to avoid the part where a cryptocurrency is basically the fuel that keeps the blockchain running.

If everyone uses bitcoin blockchain, your home computer will not be able to cope with the size.

Some mutuals (building society) can pass on the savings.

Slark

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Quote from: melody82 on June 16, 2015, 03:12:08 PM

Quote from: ChrisPop on June 16, 2015, 12:30:32 PM

Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022, a new report from Santander InnoVentures claims.

http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/

Do you realise how much money is that? With such savings,the bank could raise bank deposits interest rate or lower the loans interest. That refers only to some banks,there are some who just want to keep the profits for themselves.

You are kidding right? Can you seriously imagine banks passing those savings on to consumers? No they will pass the extra money right back into their own pockets just like they always do!

I think nobody is stupid enough to think that saved money with blockchain tech will help customers, people in need or anyone but banks. It will be a waste and it will only make financial elites even richer.
But I wonder how they will manage their own blockchain. Will they provide computing power themselves and it will be private blockchain?

melody82

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Quote from: ChrisPop on June 16, 2015, 12:30:32 PM

Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022, a new report from Santander InnoVentures claims.

http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/

Do you realise how much money is that? With such savings,the bank could raise bank deposits interest rate or lower the loans interest. That refers only to some banks,there are some who just want to keep the profits for themselves.

You are kidding right? Can you seriously imagine banks passing those savings on to consumers? No they will pass the extra money right back into their own pockets just like they always do!

unamis76

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They are finally discovering gun powder Roll Eyes

It was taking long to praise blockchain technologies... Now the question is, how are they going to implement it for fiat currency? Whatever they're going to do, I bet it will be centralized.

oblivi

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Quote from: ChrisPop on June 16, 2015, 12:30:32 PM

Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022, a new report from Santander InnoVentures claims.

http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/

Do you realise how much money is that? With such savings,the bank could raise bank deposits interest rate or lower the loans interest. That refers only to some banks,there are some who just want to keep the profits for themselves.

Everyone will be using the Bitcoin blockchain to run their banking infrastructures, because it doesn't make sense to use any other blockchain. Not using the Bitcoin blockchain = guaranteeing your shit will get hacked. For some reason they STILL keep the "blockchain tech" thing but tend to avoid the part where a cryptocurrency is basically the fuel that keeps the blockchain running.

ChrisPop

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Blockchain technologies could reduce banks' infrastructural costs by $15-20bn a year by 2022, a new report from Santander InnoVentures claims.

http://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year/

Do you realise how much money is that? With such savings,the bank could raise bank deposits interest rate or lower the loans interest. That refers only to some banks,the majority are the ones who just want to keep the profits for themselves.

Topic: Santander: Blockchain Tech Can Save Banks $20 Billion a Year (Read 1043 times)